Third of U.S. economy already in recession or at high risk, and another third is stagnating, Moody’s economist warns
After saying that the U.S. is on the precipice of a recession earlier this month, Moody’s Analytics chief economist Mark Zandi continued to add more granularity to his warning.
In social media posts on Sunday, he said his assessments of various datasets indicate that states accounting for nearly a third of U.S. GDP are already in a recession or at high risk of slipping into one. Another third is treading water, while the last third is still expanding.
“States experiencing recessions are spread across the country, but the broader D.C. area stands out due to government job cuts,” Zandi added. “Southern states are generally the strongest, but their growth is slowing. California and New York, which together account for over a fifth of U.S. GDP, are holding their own, and their stability is crucial for the national economy to avoid a downturn.” [Continue reading…]