An economist had a stark warning for Maryland lawmakers: Expect a recession in mid-2020.
Moody’s Analytics economist Dan White told members of the Senate Budget and Taxation Committee that because the federal government accounts for a large part of Maryland’s economy, the state is in better position than most others to withstand the impact of a recession. However, the ongoing government shutdown could change everything.
Already the longest shutdown ever, White said it would be “extraordinary” for it to extend to March. If it does, the recession could happen sooner and “all bets are off” on what impact would be for the local economy, White said. Small businesses owners already say they are feeling the effects of the shutdown.
“If [the shutdown] gets to March, it will be enough to cause a recession in the United States,” White said. “Maryland and Virginia would be squarely at the epicenter of that. The impacts are pretty significant. After two or three months, you can’t go without people getting paychecks.”