Moody’s Says The Maine Economy is in a Recession

As the peak tourism season for many towns and cities in Maine comes to an end in 2025, the numbers on visitors and money spent will begin to trickle in.

The totality of those numbers is widely expected to be down from a year ago. Part of that will be blamed on international relations with Canada.

But that won't be the only reason. Some of the blame for less dollars being spent in Maine will be that residents of Massachusetts, New York, Rhode Island, Connecticut and other states are feeling the squeeze on their wallet just as people in Maine are.

According to Market Watch, there isn't a recession on the way for Maine. It's already here.

Moody's Says Maine is One of 22 States in the Nation Experiencing a Recession Right Now

A chief economist at Moody's says that 22 states across the nation are currently experiencing a recession. The effects of economic recession differ from state to state.

For Maine, there's been an obvious reduction in tourism dollars spent. But there's some other less obvious signs as well.

Maine's growth, both in population and business, continues to stagnate. As Maine households struggle with rising costs, everyday spending by in-state residents continues to decline.

The Outlook for Maine's Economy in 2026 Remains Concerning

As widespread tariffs continue to impact the cost of goods, it seems unlikely life will become cheaper in Maine next year.

The tariff expense couple with continued strained relations with Canada makes the 2026 economic outlook bleak for Maine's tourism industry.

If Maine's economic recession gets worse, reduction in workforce at many businesses is expected.

2026 could be an interesting year.