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The U.S. economy fell 2.9 percent during this year’s first quarter; surprising economists who estimated the fall to be quite lower and making it the worst quarter since the 2009 recession. Economists predicted that the U.S. gross domestic product (GDP) would decreased by 1 percent, which is almost three times less than the actual decline, the U.S. Department of Commerce announced Wednesday.
According to USA Today, the economy fell the lowest it has since the drastic 5.4 percent fall during the first quarter of the 2009 Great Recession. Since then, the only other time the economy has diminished is during the first quarter of 2011 at 1.3 percent.
Economists say that a decline in household consumption and exports may partly be to blame for the lower drop. Household consumption grew only 1 percent, while expected to grow over 3 percent, and exports decreased by nearly 9 percent.
The long winter full of extreme temperatures has also significantly affected growth during those first three months of the year. Economists predicted that the weather would cause for a 1.5 percent decrease in GDP growth; the low temperatures also restricted export growth this past winter, Fox News noted.
Many may be concerned that these higher drops could point to another recession. Economists, however, believe that there is no need to be alarmed since the economy is expected to grow 3 percent next quarter and will continue growing.