The Economic Perspective: “Will the World Push Us into a Recession?”

This is Mary Walden with economist MW welcoming you to the economic perspective. Today’s program asks if the world will push us into a recession.  Mike, recently the stock market suffered a large drop on news of slowing economic growth in many nations.  Is it reasonable to worry that the economic sluggishness will impact the U.S., perhaps by creating a recession?

Mike:  Summary Answer

  1. Europe’s economy is now growing at a 1% annual rate, or lower
  2. Same for Japan
  3. China is growing at 6%, but this is the lowest rate in 25 years
  4. So reasonable to worry
  5. But, big difference between these countries and the US
  6. For the world, exports account for one-third of the economy
  7. In the U.S., the proportion is only 5%
  8. So we are exposed, but much less so
  9. Reason expecting slower growth in the U.S. but not negative, is best bet
  10. I’m MW

 

Mary:  And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.