The nation’s gross domestic product – the broadest measure of economic activity – fell at an annual rate of 1.4% between January and March in a sharp reversal of last year’s strong growth.
Much of the decline was due to a decline in stock investments, which had been booming in the last months of 2021[ads1].
Exports and government spending also fell, while imports rose. Consumer spending, which is crucial for the economy, increased as prices continued to rise.
The price index that follows personal consumption expenditure rose by 7% in the first three months of the year, or 5.2% when energy and food prices were removed.
A second estimate for first-quarter GDP growth will be published at the end of May.
Correction: An earlier version of this story erroneously said that the economy expanded in the first quarter of this year.
This is a development story. It will be updated.