Infographic: How a European Recession Could Hit State Economies
Economists are increasingly concerned that Europe’s debt crisis will result in economic contraction across the continent. Will the fiscal pain impact U.S. states? Some states more than others, concludes a recent report by Wells Fargo Securities. The report looks at exports of goods from the 50 states to Europe — not a perfect measure of state risks in Europe, the authors acknowledge, but one worth looking at nonetheless. The greatest exposure is in Utah, where 5.6 percent of the state’s economic output is tied to exports to Europe, particularly gold. Sales of cars made in South Carolina, coal mined in West Virginia and aircraft parts made in Kentucky all could take a hit depending upon which countries Europe’s troubles spread to and how long the turmoil lasts.
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