While some states are considered to be in a recession, others are on the brink or nearing one, according to an analysis from Moody’s Analytics economist Mark Zandi.
Twenty-one states and the District of Columbia, which contribute about a third of U.S. economic activity, are already in a recession — a significant, widespread decline in economic activity that lasts for an extended period, his analysis shows.
Another 13 states, comprising roughly another third of the economy, are treading water, and the remaining 16 are nearing recession conditions, he told USA TODAY.
“State-level data makes it clear why the U.S. economy is on the edge of recession.” Zandi said. Here’s what to know in Tennessee.
Is Tennessee in a recession? How it compares to other areas in the country
Tennessee is considered to be on the brink of a recession, according to the analysis, while surrounding states like Mississippi, Georgia and Virgina are already in a recession.
The D.C. area, however, “stands out due to government job cuts,” Zandi said.
The federal government is one of six industries he sees in recession. Others include transportation and distribution, agriculture, mining, manufacturing and construction.
“No surprise those industries struggling the most are most impacted by the higher tariffs, highly restrictive immigration policy, and the DOGE (Department of Government Efficiency) cuts,” he said.
New England states generally tend to have weaker economies than the rest of the country, even in the best of times, because of slow population growth, Zandi said. A few states like Georgia and Illinois are also expensive to live in, which has hindered an increase in population, he added.
States like Texas and Florida generally always fare well, partly because of their low taxes, Zandi said.
Pennsylvania surprised him on the upside. “It’s doing well because of health care and education,” he said. “Philadelphia and Pittsburgh are driving the train.”
Other growing industries include technology, state and local government and real estate, he continued.
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Diana Leyva covers trending news and service journalism for the Tennessean. Contact her at Dleyva@gannett.com or follow her on X at @_leyvadiana
This article originally appeared on Nashville Tennessean: Is Tennessee in an economic recession? What to know
