Recession fear is back or U.S. economy – Expert sounds alarming warning

According to an analyst, the US economy faces fears of stagnation. Mark Zandi, the chief economist of Moody’s, a credit rating agency, said that the data at the US state level shows that the country is “on the edge of stagnation”. According to Zandi, one of the first economists to predict the 2008 financial crisis, the US states that make up about one third of the US Gross Domestic Product (GDP) are currently in a stagnation or a high risk of entering.

“Based on my assessment of various data, the states that make up about one -third of the US GDP are either at the risk of stagnation or at high risk, the other third is only stable and the remaining third.”

Also, in an interview with Newsweek, Zandi said, “For an average American, this risk arises in two ways. It means higher prices in the store, which means business deduction between food, goods and transportation industries.”

“Prices are already rising; you can see the data, but they will rise to a degree that people will ignore it. They will clearly see this in what they buy daily.”

Based on the data about the economy, expenditure, work and manufacturing, the profits of the US companies and the tariffs that damage the ongoing problems in the US housing market, he added. Zandi said that the stagnation states spread throughout the country, but the wider DC region came to the fore due to state business cuts.

His analysis showed that the Southern states are often the most powerful, but their growth slowed. California and New York, which constitute more than one fifth of the US GDP together, keep their stability and their stability is very important to prevent a decline of the national economy

Wyoming, Montana, Minnesota, Mississippi, Kansas and Massachusetts were some of the states of recession.

US consumers until July 2025 expenditures, barely bombed from the end of last year-2008-09 has been worse than any year and showed an economy on the verge of stagnation.

FAQ

Quarter. Which states are under the risk of recession?
A1. Wyoming, Montana, Minnesota, Mississippi, Kansas and Massachusetts were some of the states of recession.

S2. Who is the Chief Economist of Moody’s?
A2. Mark Zandi is the chief economy of Moody’s, the credit rating agency.