Analysts Warn of “Zombie Economy” Risks Amid Structural Shifts
Concerns are mounting over the long-term health of the U.S. economy, with some analysts warning of a potential “zombie economy” — a scenario where high interest rates and sluggish productivity allow weak or unproductive companies to survive without real growth.
Experts caution that while the U.S. economy has remained resilient, structural issues are beginning to surface. Prolonged tight monetary policy, combined with uneven productivity gains, could create an environment where businesses merely stay afloat instead of thriving.
Adding to these concerns are broader global trends shaping the economic landscape. The rapid integration of artificial intelligence (AI), shifting global supply chains, and deepening geopolitical fragmentation are being closely watched as potential disruptors in the coming years.
Analysts suggest that policymakers and investors may need to rethink strategies for fostering innovation and competitiveness in this new environment — one where resilience may no longer be enough without genuine productivity growth.
