Looks like the U.S. economy is going to have a rough time in 2025. Mark Zandi, the main economist at Moody’s Analytics, is saying a good chunk of the country is already feeling the pinch of a recession. He estimates about a third of the U.S. economy is either in a recession or close to it, and another third isn’t growing at all. So, it’s an economy of two sides: some areas are doing okay and growing a little, but others are having problems with decline or just not moving forward.
The possibility of a recession isn’t the same everywhere. Some areas are still doing well, like tech centers and places that rely on services. But states with lots of manufacturing, farming areas, and the housing market are really feeling the pinch. Higher prices, big interest rates, fewer new jobs, and shaky international trade are making things even more risky, so the economy is pretty spotty right now.
Economic Divides Across the Nation:-
Zandi’s breakdown shows some clear differences across the country. States that rely a lot on making things, farming, or property are getting hit the hardest. On the other hand, places where tech and services are big are holding up better. This uneven growth makes you wonder how bad things could get if we don’t handle it right with smart money moves from the government.
What This Means for Americans:-
What this means for regular folks is less money to spend and fewer new jobs. Also, where you live can really change what’s open to you. Some businesses in places such as Texas, Florida, and some parts of the Midwest are struggling. The coasts seem more steady because they have stronger service industries, but that could change anytime.
Even with some concerns out there, some industries are doing fine. Tech, healthcare, and energy are stable and might even improve. Plus, Fitch Ratings believes the U.S. economy is still strong (AA+) due to income from tariffs and wise financial strategies. Even though a large part of our economy is struggling and another part isn’t growing, a recession is still possible.
This situation shows the challenges in the U.S. economy, where some areas grow while others decline. Leaders, businesses, and people need to prepare for uncertainty. While we can remain optimistic about the industries that are performing well, we should also prepare for a possible recession.