Currently, the US Economy is not in the right situation, and many economists are predicting that the country might go into recession because of the trade wars, government shutdown issues. There’s an evident uncertainty in the US stock market regarding what’s going to happen next because many are worried whether the US economy will grow at a stagnant 3 percent? Or The Feds are going to raise the interest rates again?. These are some questions which every businessperson and investor in the USA is asking themselves because of the current political conditions in the country. Many big companies like Apple, Microsoft, Tesla has got hit because of the government’s trade war and these companies overseas sales have drastically fallen. Many agricultural companies have filed for bankruptcy because of the low sales this sector generated this year.
One of the major reasons why the US economy might go into recession is that the country ’s economic expansion has gotten slow because there are many industries which are getting hit because of the government shutdown. According to recent reports which states craft beer industry has hit its low point because many companies are not able to sell off their products in the local market. There are some businesses in the country which requires constant and daily approval from the top authorities, and since the government is not working, they’re not getting any approval from these officials. The adverse effect of a trade war has started because recently China recorded the slowest growth rate in its export and import sector and now the US is also facing that same problem.
Due to the government shutdown, more than 800000 federal employees are working without any pay, and if the situation continues for long, then it will inevitably affect on the US economy ’s growth rate.