GDP falls, stock markets open in the red and Trump blames Biden
The president called for Americans to "be patient" despite the plunge in the economic indicator and was confident about the near future: "This will take a while."
New York Stock Exchange
Gross domestic product (GDP) fell 0.3% at an annualized rate in the first quarter of 2025, the Department of Commerce (DOC) reported. This slight contraction of the macroeconomic variable caused a negative opening of the main stock markets.
"The drop in real GDP in the first quarter reflects a rebound in imports, a slowdown in consumer spending and a decline in government spending," the DOC said, in statements picked up by AFP.
At the start of trading Wednesday, the New York Stock Exchange opened with losses. Dow Jones was down 0.7%, while the Nasdaq and the S&P 500 reflected more considerable declines of 2.07% and 1.35%, respectively.
Despite the GDP setback, President Donald Trump was optimistic about the economy for the near future and called for Americans to "be patient," while blaming Joe Biden, his predecessor in office, for this bad sign.
"This is Biden’s Stock Market, not Trump’s. I didn’t take over until January 20th. Tariffs will soon start kicking in, and companies are starting to move into the USA in record numbers. Our Country will boom, but we have to get rid of the Biden 'Overhang.' This will take a while, has NOTHING TO DO WITH TARIFFS, only that he left us with bad numbers, but when the boom begins, it will be like no other. BE PATIENT!!!"
As AFP reported, analysts' forecasts pointed to GDP growing 0.4% in the first quarter of 2025. Last year, it rose by 2.8%.
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