Chief economist at Moody’s Analytics Mark Zandi, on Tuesday, said that the state-level data reveal the US economy “is on the edge of recession”. Based on Zandi’s analysis, states that make up nearly a third of U.S. GDP (gross domestic product) are either in or at high risk of recession.
In an interview with Newsweek, Zandi said, “For the average American, that risk shows up in two ways. It means higher prices at the store, and it means job disruption across industries tied to food, goods, and transportation.”
Zandi said that he doesn’t think the economy is in a recession at the moment, but he feels like it’s on the brink. He said the economy is very close to a recession, based on data about spending, jobs, and manufacturing. Zandi’s worries come mainly from tariffs hurting American company profits and ongoing troubles in the US housing market.
Along with the recession, Zandi said he anticipates the annual inflation rate, which is currently at 2.7%, to increase above 3% and approach 4% by this time next year.
“Prices are already rising; you can see it in the data, but it’s going to rise to a degree that it will be impossible for people to ignore. They will see it clearly in the things that they’re buying on an everyday basis,” Zandi told Newsweek.
