By Manuel Gutierrez, Consulting Economist to NKBA


The loss follows a strong 6.9 percent gain last quarter and 5.7 percent for full year 2021.

  • Other than the short-lived drop in 2020 caused by the pandemic shutdown, negative GDP has not occurred since Q1 2014.
  •  Positive factors included consumption, which grew by 1.8 percent, and investment, which edged up 0.4 percent.
  •  Significant negative contributors were foreign trade, as imports jumped by 18 percent to $3.9 trillion while exports dropped by 6 percent to $2.4 trillion due to the US economy recovering more quickly than others.
  •  Government spending also factored into the decline, off by 0.5% for the quarter.
  •  Total investment rose, but the key component of business inventories fell due to continued supply chain issues.
  •  Businesses have reduced construction of new buildings as well as improvement of existing ones since the fourth quarter of 2019.