By John Meyer, consultant in financial affairs – Eurasia Business News, July 30, 2025. Article no. 1669

The U.S. economy’s Gross Domestic Product (GDP) grew at an annualized rate of 3% in the second quarter of 2025, rebounding strongly from a 0.5% contraction in the first quarter. This growth exceeded economists’ expectations of around 2.4% to 2.6% and reflects a significant recovery.

Key factors driving this rebound include:

  • A large decline in imports (down 30.3% in Q2), which positively affected GDP calculations since imports are a subtraction in GDP accounting.
  • An increase in consumer spending, which accelerated to 1.4% growth, led by goods consumption (2.2% growth), though this was still moderate compared to past quarters.
  • A rebound in government expenditure (0.4% growth after a decline in Q1).
  • However, there were slowdowns in fixed investments such as structures and residential investments, and exports declined by 1.8%, which partially offset gains.

The quarter also marked the first three months under the broad imposition of President Trump’s tariffs, which had earlier contributed to a stockpiling surge causing the Q1 drop. The 3% growth reflects a reversal of that import surge, “artificially juicing” the growth numbers to some extent.

Read also : Gold : Build Your Wealth and Freedom

Overall, the data suggest the U.S. economy rebounded solidly in Q2 2025, with growth driven by consumer spending and declining imports amid ongoing tariff effects.

This growth rate is the advance estimate released by the U.S. Bureau of Economic Analysis on July 30, 2025.

The median weekly earnings of the United States 121.5 million full-time wage and salary workers were $1,196 in the second quarter of 2025. This was 4.6 percent higher than a year earlier, compared with a gain of 2.4 percent in the Consumer Price Index for All Urban Consumers (CPI-U) over the same period. Women had median weekly earnings of $1,078, or 81.1 percent of the $1,330 median for men. This growth in media wage also fuel the GDP growth.

Advertisements

Our community already has nearly 150,000 readers!

Subscribe to our Telegram channel

Follow us on Telegram, Facebook and Twitter

© Copyright 2025 – Eurasia Business News. Article no. 1669