That meager 0.2 percent preliminary increase in reported Q1 U.S. GDP could actually be in jeopardy. After today’s trade report the final GDP figure may be negative. The U.S. trade deficit soared 43 percent in March to $51.4 billion, the highest level since 1996. Imports surged 7.7 percent as the West Coast port standoff ended, unleashing a huge influx of goods, while exports were up a modest 0.9 percent reflecting the headwind of a stronger dollar. “GDP is calculated as Consumption + Investment + Government Spending + (Exports-Imports). By the time the final report is released we will already be a significant way through the second quarter which is already showing signs of rebounding. Therefore the market impact will be minimal.” says Voya Investment
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