The global economy is facing challenges, with the US experiencing a slight contraction in its gross domestic product (GDP). This downturn can be attributed to a larger impact from trade tensions related to tariffs. While this decline was expected, household spending growth turned out to be smaller than initially forecasted.
On the other hand, Canada’s economy witnessed an export surge driven by businesses shipping goods ahead of increased US duties. In contrast, India reported a stronger-than-anticipated 7.4% GDP growth rate in the first quarter, thanks to a significant expansion in exports and domestic spending.
Source: https://www.bloomberg.com/news/articles/2025-05-31/world-economy-latest-us-gdp-contracted-in-first-quarter-on-trade-hit