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Japan and the UK are in recessions. Is the US next?

·1 min


Two Major Economies Experience Technical Recession, US Not Expected to Follow Suit #

Japan and the UK have both reported their second consecutive negative quarters of gross domestic product (GDP), signaling technical recessions in both countries. Japan’s economic contraction is attributed to its shrinking population, which limits its ability to grow. In contrast, the UK’s drop in consumer spending has led to its recession. However, the US economy remains resilient, with robust consumer spending and strong labor market indicators. While there is no official announcement of a recession in the US, the risk has been elevated since the Federal Reserve’s tightening cycle began. Despite this, experts believe the US will have a slow-growth year rather than entering a recession, citing the strength of the labor market and personal finances as key factors.