--- description: GDP contracted by 2.9% in the first quarter title: Economy Contracted by 2.9% of GDP in First Quarter image: https://static.time.com/v3/assets/bltea6093859af6183b/blt59d5e006f270f27a/69869923f983e7652404e8e7/461239915.jpg?branch=production&width=3840&quality=75&auto=webp&crop=16:9 ---  * [World](/section/world/) ## World Update your preferences in [Account Settings](/account/preferences/) Close * [Economy](/tag/economy/) ## Economy Update your preferences in [Account Settings](/account/preferences/) Close # Economy Takes Biggest Hit Since End of Recession  by [Dan Kedmey](/author/dan-kedmey/)  ## Dan Kedmey Update your preferences in [Account Settings](/account/preferences/) Close Jun 25, 2014 3:53 PM CUT  People bundling up in their coats walk outside in New York City, United States, January 7, 2014. People bundling up in their coats walk outside in New York City, United States, January 7, 2014.Bilgin Sasmaz—Anadolu Agency/Getty Images  by [Dan Kedmey](/author/dan-kedmey/)  ## Dan Kedmey Update your preferences in [Account Settings](/account/preferences/) Close Jun 25, 2014 3:53 PM CUT The U.S. economy shrank by 2.9% in the first quarter of 2014, according to newly revised government data Wednesday, its biggest contraction since the end of the recession in 2009. The revised figure was nearly one percentage point worse than previous estimates, taking into account a more complete set of data that revealed a sharp downturn in exports and a deceleration in consumer spending. Health care spending fell by 0.2%, reversing previous estimates that it would grow as the health care reform law took effect. Exports dropped off by 8.9%, down from 9.5% growth in the previous quarter. The good news? This is the third and final revision to a quarter in which the economy was walloped by blizzards and crippling cold, and leading indicators point to a rebound in the second quarter. [ ](https://time.com/wp-content/uploads/2014/06/01%5Freal%5Fgdp%5F2007-2014.jpg "undefined")  ```json [{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://time.com/2920900/economy-recession-gdp/","mainEntityOfPage":{"@type":"WebPage","@id":"https://time.com/2920900/economy-recession-gdp/"},"headline":"Economy Takes Biggest Hit Since End of Recession","datePublished":"2014-06-25T15:53:45.000Z","dateModified":"2026-05-11T05:08:12.845Z","description":"GDP contracted by 2.9% in the first quarter","url":"https://time.com/2920900/economy-recession-gdp/","keywords":["Economy","Recession","GDP","growth","Spending","exports"],"thumbnailUrl":"https://static.time.com/v3/assets/bltea6093859af6183b/blt59d5e006f270f27a/69869923f983e7652404e8e7/461239915.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","author":[{"@type":"Person","name":"Dan Kedmey","jobTitle":null,"url":"https://time.com/author/dan-kedmey/"}],"articleSection":"World","image":[{"@type":"ImageObject","url":"https://static.time.com/v3/assets/bltea6093859af6183b/blt59d5e006f270f27a/69869923f983e7652404e8e7/461239915.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","width":1200,"height":675,"headline":"Polar Vortex drops over United States and Canada","caption":"Polar Vortex drops over United States and Canada","creditText":"Bilgin Sasmaz—Anadolu Agency/Getty Images","representativeOfPage":true}],"publisher":{"@type":"Organization","name":"Time","url":"https://time.com/","logo":{"@type":"ImageObject","url":"https://time.com/images/logo.png","width":528,"height":156},"foundingDate":"March 3, 1923","sameAs":["https://www.facebook.com/time","https://www.instagram.com/time/?hl=en","https://twitter.com/time","https://www.pinterest.com/timemagazine"]}},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"/section/world/","name":"World"}},{"@type":"ListItem","position":2,"item":{"@id":"/tag/economy/","name":"Economy"}},{"@type":"ListItem","position":3,"item":{"@id":"https://time.com/2920900/economy-recession-gdp/","name":"Economy Takes Biggest Hit Since End of Recession"}}]}] ```