Creative Investment Research Publishes Economic Analysis of First Quarter 2025 GDP Decline

WASHINGTON - April 30, 2025 - PRLog -- Creative Investment Research (CIR), a firm specializing in economic analysis and the development of high financial and social return investment vehicles, released a new report analyzing the U.S. economy's contraction in the first quarter of 2025 and its implications for Black-owned and minority-owned businesses.​

According to the U.S. Bureau of Economic Analysis (BEA), real gross domestic product (GDP) decreased at an annual rate of 0.3% in Q1 2025, marking the first economic contraction since early 2022. This downturn contrasts with the 2.4% growth observed in the previous quarter. The decline is primarily attributed to a surge in imports—particularly consumer and capital goods—as businesses accelerated purchases ahead of newly imposed tariffs, alongside a decrease in government spending.

Despite the overall GDP decline, real final sales to private domestic purchasers increased by 3.0%, indicating continued strength in consumer spending and private investment. However, the broader economic environment is characterized by rising inflation, with the personal consumption expenditures (PCE) price index increasing by 3.6% in Q1, up from 2.4% in the previous quarter.

Impact on Black-Owned and Minority-Owned Businesses

The economic contraction and associated policy changes have significant implications for Black-owned and minority-owned businesses, which often operate with thinner margins and face systemic barriers to capital access. The surge in imports ahead of tariff implementations has disrupted supply chains and increased costs for small businesses, disproportionately affecting minority entrepreneurs who may lack the resources to absorb such shocks.​

Furthermore, the decrease in government spending may lead to reduced opportunities for minority-owned businesses that rely on public sector contracts. The combination of these factors could exacerbate existing disparities and hinder the growth and sustainability of these enterprises.​

In our previous analysis of 2024 economic growth, we noted that Black-owned businesses generated $206 billion in annual revenue and supported 3.56 million U.S. jobs, while minority-owned businesses collectively contributed nearly $2 trillion in revenue. The current economic headwinds threaten to stall or reverse these gains, underscoring the need for targeted support and inclusive policies.​

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For more information and to access the full report, please visit https://www.impactinvesting.online/

About Creative Investment Research

Founded by William Michael Cunningham, Creative Investment Research is a pioneering firm dedicated to designing and launching high-impact investment vehicles that drive economic equity and social change. Specializing in economic analysis, impact investing, and minority business development, CIR creates innovative financial models that channel capital toward underserved communities and businesses, fostering sustainable growth and long-term prosperity.​

Media Contact:

Creative Investment Research
Email: info@creativeinvest.com
Website: www.impactinvesting.online