The United States economy shrank by 2.9 percent in the first quarter of 2014, a far steeper drop than was first thought by economists. It’s the sharpest decline since the first quarter of 2009 wherein the American economy shrank by 5.4 percent at the start of the Great Recession.
Health care spending was way down during the decline, a direct result of Obamacare. Economists expect the economy to rebound in the second quarter of 2014, but Middle East conflict and other factors could be bad signs for future economic growth.
The Associated Press has more:
The U.S. economy shrank at a steep annual rate of 2.9 percent in the January-March quarter as a harsh winter contributed to the biggest contraction since the depths of the recession five years ago. But the setback is widely thought to be temporary, with growth rebounding solidly since spring.
The first-quarter contraction reported Wednesday by…
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