Moody’s Economist Says Maryland Is at High Risk of Recession

The state’s reliance on federal employment leaves it exposed following Moody’s downgrade.

Overview

Mark Zandi warns the U.S. is on the edge of recession, with Maryland among 21 states and Washington, D.C., already in or at high risk.
He singles out the broader DC area due to President Trump’s federal workforce cuts that weigh on Maryland, Virginia, West Virginia and the District.
Zandi estimates Maryland accounts for about 1.86% of U.S. GDP and lists several peer states sliding toward contraction, while Texas, Florida and Pennsylvania are expanding.
Maryland recently closed a roughly $3.3 billion budget gap through spending cuts and tax increases as Gov. Wes Moore stresses economic growth.
Moody’s is the only major rater to downgrade Maryland this year, assigning a stable outlook, while S&P and Fitch kept AAA and officials reported a strong June bond sale.