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D.C.-area economy starts to show deep impacts of federal spending cuts | Washington Post

May 15, 2025
  • D.C. Policy Center

On May 9, 2025, Executive Director Yesim Sayin was quoted by the Washington Post:

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 Yesim Sayin, director of the D.C. Policy Center economic research group.

“I don’t know how a recession in the region can be avoided,” Sayin said, comparing the current slump to D.C.’s “lost decade” in the 1990s, when a brief national recession was followed by federal belt-tightening and local budget crises that pushed the city into a prolonged economic downturn.”

“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,” she said.

Read More: D.C.-area economy starts to show deep impacts of federal spending cuts
Additional reading: Chart of the week: Changes to federal contracts would have outsized effect on regional economy

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D.C. Policy Center


Established in 2016, the D.C. Policy Center is a non-partisan research and policy organization committed to advancing policies for a strong and vibrant economy in the District of Columbia. Through rigorous research and collaboration, the D.C. Policy Center develops and tests policy ideas, disseminates its findings, and engages in constructive dialogue and debate.

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