MassGOP Reacts to New Study Showing Mass. Economy Contracted While Inflation Nearly Doubled in First Quarter of 2025

Boston, MA - The Massachusetts Republican Party is drawing attention to a new report by MassBenchmarks showing that the Commonwealth’s economy contracted by more than three times the rate of the national economy in the first three months of 2025. 

During the same period, core inflation in the Greater Boston area rose to 6%, nearly double the current 3.5% rate of inflation across the country.

MassGOP Chair Amy Carnevale placed the blame at the feet of Governor Maura Healey, citing her extreme green energy agenda, failure to rein in government spending, and business owners’ lack of confidence in her leadership. 

“Maura Healey’s ‘energy affordability agenda’ has been anything but. You don’t need to be an economist, or even read this jaw-dropping report on Massachusetts’ economic turmoil, to understand the crisis we’re facing - just ask your friends and neighbors how much they’re now paying to heat their homes or afford their groceries,” said Carnevale. “While inflation and energy prices are dropping across the country, Massachusetts’ rates keep rising. That’s no accident: It’s a direct result of the failures brought on by Maura Healey and one-party rule on Beacon Hill, and it’s why voters will demand change in 2026.” 

BACKGROUND:

• On Monday Contrarian Boston reported that MassBenchmarks released a report showing that the Commonwealth’s economy contracted by 1% during Q1 of 2025, compared to 0.3% across the country during the same period. (MassBenchmarks) (Contrarian Boston, 5/12/25)

• Also in Q1, core inflation in Greater Boston rose to 6.5% compared to 3% nationally.

• According to the Tax Foundation, Massachusetts was ranked 46th among all 50 days for its hostile business tax climate in 2024. (Tax Foundation, 10/24/23)

• An analysis of winter energy costs for the Greater Boston area showed that residents are paying 73% higher electrical rates and 65% higher natural gas rates than the national average (Boston Globe, 3/22/25)