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