War causes contraction in U.S. economy


The U.S. economy has contracted for the first time since 2020. The decline is in part attributed to global trade disruptions caused by the war in Ukraine. Gross domestic product fell at an annualized rate of 1.4% during the first three months of 2022, slower than analysts had been forecasting. The decline marks the first since the economy plunged during the early stages of the COVID-19 pandemic. Analysts attributed the decline in GDP to a trade deficit, with global trade affected by coronavirus spikes in China and the Russian war in Ukraine. Still, analysts remained optimistic about the health of consumer spending, which rose at an annual rate of 2.7%.