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NEW YORK (Reuters) - Barclays economists on Tuesday lowered their forecast for U.S. gross domestic product in the first quarter to an annualized rate of 1.6 percent from 1.9 percent after data showed the U.S. trade gap grew to a near five-year wide in January.
"Trade was a significant drag on GDP growth in Q4 16 (-1.7 pp), following a very strong increase in imports. While we do not expect this large of a headwind to be repeated in Q1 17, the January trade data suggest another drag on growth may be in store," the Barclays economists wrote in a research note.
Reporting by Richard Leong; Editing by Chizu Nomiyama