Kathmandu. America, the world's largest economy, is once again under the cloud of recession. Since the corona epidemic started in the country in June, there was a sharp decline in service activities. The country's ISM Services PMI index fell five points to 48.8 last month. It was expected to be 52.5. This is due to the fall in the business activity index. This indicator fell by 11.6 points in June to the lowest level since April 2020. In the last 30 years, such a decline in service activity has only been seen during recessions.

Similarly, new demands fell for the first time since 2022. Experts say this could be a sign of recession. Meanwhile, the labor market is also showing weakness. The US gave encouragement during the Corona but now its effect seems to be decreasing.

Meanwhile, in the last 20 months, the production area of ​​the country has decreased by 19 times. This is the longest period since the Great Depression. In the past, service and manufacturing indices have only fallen during recessions. This shows that the US economy is shrinking rapidly, which is a sign of a recession.

On the other hand, US government spending reached $6.5 trillion in May, while the budget deficit reached 6.2 percent of GDP. This is something that only happens in a major financial crisis. America's debt has set a new record. According to April data, the federal government's debt reached $34.6 billion, which is 125 percent of gross domestic product.

In the last four years, the country's debt has increased by 47 percent, which means it has reached about 11 billion dollars. Each taxpayer owes about $267,000. If this pace continues, it is estimated that the US debt will reach 40 trillion rupees by 2025. If the Federal Reserve does not lower interest rates, the US will have to pay $1.6 trillion a year in interest on this debt.