Moody's finds 22 states + D.C. in recession as U.S. GDP grows at 3.8%

The Atlanta Federal Reserve"s GDPNow estimates that the U.S. economy is growing at an annual rate of 3.8%. However, Moody"s Analytics reports that 22 states and Washington, D.C. are already experiencing recession conditions, spanning from Washington to Georgia to Massachusetts.

Mark Zandi, chief economist at Moody"s, stated that the U.S. is "on the precipice" of a damaging economic contraction. Job losses are increasing in states reliant on manufacturing, farming, and transportation, while high-cost states like Georgia are witnessing population declines. Even major economies such as California and New York are described as "treading water."

While GDP figures suggest growth driven by consumer spending and services, localized data indicates that goods-producing regions are facing significant challenges. Historically, state-level recessions have often preceded national economic downturns. Zandi attributes the current economic uncertainty to factors such as tariffs, job cuts, and stalled labor growth. Some analysts argue that the slowdown is being overstated.

Regardless of differing opinions, the presence of 22 recessions within the broader economy signals a warning rather than a sign of stability. For more on related developments, see recent developments regarding tariffs and their economic impact.