Meaning that if the rate of decline experienced in Q1 continued throughout the year, then the annual shrinkage would be about 3%. 1.0074^4 is about 1.03, so the

Meaning that if the rate of decline experienced in Q1 continued throughout the year, then the annual shrinkage would be about 3%. 1.0074^4 is about 1.03, so the actual shrinkage for the quarter in question was 0.74%.