On May 9, 2025, Yesim Sayin, Executive Director of the D.C. Policy Center economic research group, discussed the economic challenges facing the D.C. region with the Washington Post. She highlighted several indicators suggesting an economic downturn is underway in the area. “But there are enough concerning data points in the D.C. region — including an office market that’s still in shambles following the pandemic — to indicate that some kind of economic slump is underway, pointing toward a prolonged economic contraction that typically marks a recession,” said Sayin.
Sayin expressed concerns about avoiding a recession in the region, drawing parallels to past economic difficulties. “I don’t know how a recession in the region can be avoided,” she stated, referencing D.C.’s “lost decade” during the 1990s when federal spending cuts and local budget issues led to a lengthy downturn.
She further noted that decreased government spending has impacted regional GDP and consumer spending could also be at risk due to job market uncertainties. “Government spending is down in the region, and that, by definition, reduces GDP, and our consumer spending is also at risk because of the uncertainties around the job market,” Sayin explained.
