{"id":48959,"date":"2022-09-29T12:01:59","date_gmt":"2022-09-29T10:01:59","guid":{"rendered":"https:\/\/pharma-trend.com\/en\/moodys-analytics-most-states-are-well-prepared-to-weather-a-recession\/"},"modified":"2022-09-29T12:01:59","modified_gmt":"2022-09-29T10:01:59","slug":"moodys-analytics-most-states-are-well-prepared-to-weather-a-recession","status":"publish","type":"post","link":"https:\/\/pharma-trend.com\/en\/moodys-analytics-most-states-are-well-prepared-to-weather-a-recession\/","title":{"rendered":"Moody\u2019s Analytics: Most States are Well Prepared to Weather a Recession"},"content":{"rendered":"
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NEW YORK–(BUSINESS WIRE)–The majority of US states have the resources needed to get through an economic recession, according to a new study<\/a> from Moody\u2019s Analytics. A record 43 states have the cash they need to weather an economic slump without having to resort to severe spending cuts or tax increases.\n<\/p>\n

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\n\u201cStates have never been in a better position to make it through a recession,\u201d said Emily Mandel, the study\u2019s author. \u201cState policymakers seem to have learned a valuable lesson from the Great Recession, a period when tax revenue losses far outstripped savings.\u201d\n<\/p>\n

\nThe Moody’s Analytics study examines how well a state\u2019s finances can carry it through an economic downturn. Economists at Moody\u2019s Analytics ran stress tests on all 50 states to arrive at an estimate of each state\u2019s recessionary needs in the event of a moderate recession. The study takes into account the impact of the business cycle on state revenues and spending over two fiscal years.\n<\/p>\n

\nWhile the stress test results find most states prepared for a recession, there is some variation in their degrees of readiness, according to the study. In total, 39 states have the funds to significantly reduce stress from a recession. Four states would have to raise taxes or cut spending by less than 5% of their budgets. However, seven states would have to resort to spending cuts or tax increases of more than 5% of their budgets.\n<\/p>\n

\nStates overly dependent on tourism and consumer spending will be most hard hit during a recession, according to the study. States with agriculture and energy-based economies are better positioned to weather the storm.\n<\/p>\n

\nThe bottom five states with less than a 10% revenue gap are:\n<\/p>\n