The Washington PostThe Washington Post

Economy shrinks 1.4% in first 3 months of year, raising recession fear

By Abha Bhattarai

28 Apr 2022 · 5 min read

WASHINGTON - The U.S. economy unexpectedly shrank at a 1.4% annualized rate in the first three months of 2022 after more than a year of rapid growth, according to a Bureau of Economic Analysis report released Thursday. The new data is fueling concerns about a recession amid steady inflationary pressures and uncertainty over the war in Ukraine.

The slowdown - the first since the covid-19 recession in April 2020 - marks a reversal from the torrid pace that followed intense fiscal and monetary stimulus in the wake of the pandemic. Last year, for example, the U.S. economy grew by 5.7%, the fastest full-year clip since 1984.

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