4 Signs Stagflation Could Be Coming in 2025

I heard about inflation (and you know how terrible it is), but have you heard of “stagnation”? It is also terrible. The Merriam-Webster is defined as “constant inflation along with the stagnant demand for consumers and relatively high unemployment.” Yixes.

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Some economic experts believe that the recession in the United States is on the horizon. Why? What are the signs that the recession is coming and what can you do to prepare financially?

The slowdown of GDP (gross domestic product) – when the production of the economy begins to decline or decade – is a great warning of the red flag of stagnation. This science was waved earlier this year. The GDP decreased by an annual rate of 0.3 % in the first quarter of 2025 (January, February and March), according to the appreciation of the progress made by the US Economic Analysis Office [2].

“The federal reserve is now a real growth in GDP by 1.4 % of 2025, a decrease from 1.7 % in its offer in March,” said Alex Tsipayev, civil society organizations at the B2PRIME group. “The Organization for Economic Cooperation, Development and the World Bank has reduced growth forecasts in the United States due to trade tensions and uncertainty in politics. In addition, the leading economic index of the conference council (LEI) decreased again in May, which represents a 2.7 % decrease over the past six months, which is close to the recession.”

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Return to the word is closely related to “stagnation” – inflation. A main sign of inflation is persistent inflation. This is also called “sticky inflation”, and we see it hovering around the basics such as food and fuel.

“These categories are less sensitive to raising interest rates, making them very expensive,” said Dan May, director and co -founder of Dipolo & May. “These are unacceptable expenses that pressure the family budgets. When consumers are forced to spend more on the basics, they reduce elsewhere. This slows economic growth and makes inflation more painful because it is linked to necessities instead of luxury or optional spending.”

Another major warning sign of inflation is the weak labor market. However, we see a decrease in job opportunities, workers’ demobilization and increased unemployment rates. Currently, the labor market shows weaknesses.

“The recent job data has missed economists’ expectations,” said Jake Fallon, CRPC, CEO of Falcon Wealth Adviss. “Employers added much lower jobs in February of January, and unemployment claims have risen. This softening labor market is a classic introduction to economic stagnation.”