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Whether GDP swings up or down, there are limits to what it says about the economy and your place in it

By Sophie Mitra, Professor of Economics, Fordham University

The Bureau of Economic Analysis released the latest U.S. gross domestic product data on April 30. In the first three months of 2025, it said, GDP contracted by 0.3%. The GDP growth rate captures the pace at which the total value of goods and services grows or shrinks. Together with unemployment and inflation, it usually receives a lot of attention as an indicator of economic performance.

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