Atlanta Fed Cuts Q1 2025 GDP Growth to -3.7%, Raising Recession Fears

The Atlanta Fed has significantly revised its forecast for US GDP growth in Q1 2025, projecting a contraction of -3.7%. This downward adjustment raises concerns about the potential start of a recession and prompts market participants to reassess their investment strategies. The model’s quantitative nature relies on real-time economic data and has been impacted by recent downturns in construction spending and manufacturing activity as per March’s economic indicators.