Economists Debate Recession Risks as U.S. Economic Uncertainty Grows
Concerns over tariffs, stock market declines, and consumer confidence fuel speculation about a potential 2025 downturn.
- Experts remain divided on the likelihood of a 2025 recession, with Goldman Sachs estimating a 20% chance within the next year, up from 15%.
- Key recession indicators include declining GDP, reduced consumer spending, falling business investment, and rising unemployment rates.
- President Trump's tariff policies and trade disputes with major partners like China, Mexico, and Canada are cited as factors contributing to economic unease.
- Economists emphasize that recessions are often identified only after they begin, as GDP and other metrics are lagging indicators.
- Financial experts advise individuals to prepare by reducing discretionary spending, paying down high-interest debt, and building emergency savings.