US Economy Surges with Unexpected 3% Growth in Second Quarter

The US economy astonished analysts with a 3% annual growth rate from April to June, bouncing back from disruptions caused by trade wars. The surprising expansion, reported by the Commerce Department, follows a 0.5% decline in the first quarter due to increased imports prior to tariffs.


Devdiscourse News Desk | Washington DC | Updated: 30-07-2025 18:21 IST | Created: 30-07-2025 18:21 IST
US Economy Surges with Unexpected 3% Growth in Second Quarter
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The US economy has defied expectations by expanding at a 3% annual pace from April through June. This recovery marks a significant rebound from the first quarter's 0.5% decline, which was impacted by trade disruptions stemming from President Donald Trump's tariffs.

The Commerce Department's Wednesday report highlights how the nation's gross domestic product (GDP) bounced back in the second quarter. During the first three months of the year, a surge in imports—a response to impending tariffs—contributed heavily to the GDP drop.

Economists had forecasted a 2% growth for the second quarter. However, a reduction in imports surprisingly buoyed the economy, adding over 5 percentage points to growth. Meanwhile, consumer spending improved modestly, rising by 1.4% compared to early 2019.

(With inputs from agencies.)

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