Wisconsin’s economy could be impacted by a potential recession in 2020, according to a study looking at how states across the country would weather broader economic forces in the year ahead.
Researchers with Bloomberg suggested Wisconsin could be one of seven across the U.S. entering a state of contraction.
In addition to Wisconsin, Bloomberg’s analysis suggests three other battleground states – Michigan, Ohio and Pennsylvania – that tilted in President Donald Trump’s favor in the 2016 race could be vulnerable to contraction during the upcoming pivotal election year.
The Bloomberg analysis was based on data from the Federal Reserve Bank of Philadelphia, but does not necessarily portray an ominous picture of next year’s economic climate in the respective states.
“The data don’t predict recessions in Michigan, Pennsylvania, Wisconsin and Ohio,” Bloomberg’s Alexandre Tanzi and Gregory Korte wrote in the article. “Rather, it shows the states may be entering a weak period in their business cycles.”
Fed indexes reveal Wisconsin’s economy contracted 0.05 percent at the end of the third quarter of this year. By contrast, the national economy continued to expand at the end of 2018 in the state to the tune of 0.73 percent.
The other three states expected to contract next year, according to the Federal Reserve, include Rhode Island, West Virginia and Wyoming.
The Federal Reserve’s economic forecast in other states is different, particularly those in the southern portion of the country, which points to continued growth in the year ahead. South Carolina is expected to have the strongest growth.