Morgan Stanley forecasts 30% GDP contraction, 12.8% unemployment rate in Q2
March 23, 2020 By Andrew Moran Leave a Comment
Early estimates suggested that the U.S. economy would experience a minor bump from the COVID-19 pandemic. Now that the coronavirus has produced such devastation, forecasts are being modified.
According to Morgan Stanley economists, the gross domestic product (GDP) will plunge 30.1 percent in the second quarter, lifting the unemployment rate to as high as 12.8 percent during the April-to-June period.
Scary. That is some serious economic pain.
“Economic activity has come to a near standstill in March,” the Morgan Stanley economists said. “As social distancing measures increase in a greater number of areas and as financial conditions tighten further, the negative effects on near-term GDP growth become that much greater.”
Is the U.S. on the brink of a depression?
Well, Federal Reserve Bank of St. Louis President James Bullard is anticipating a 30 percent jobless rate and a monumental 50 percent drop in GDP.
The Bank of America projects a 25 percent contraction, while JPMorgan Chase expects a 14 percent drop. Goldman Sachs thinks the global economy will slump one percent.
Like this article? Get ECN delivered to your inbox daily. Subscribe here.
Similar articles you might enjoy:
- Will the Federal Reserve prescribe medicine or a placebo to fight the coronavirus?
- 5 random things for a Friday (no rate hike for two years?, Ron Paul on election, political attack ads)
- Donald Trump says Hillary Clinton, Jeb Bush bought by hedge funds
http://economiccollapsenews.com/2020/03/23/morgan-stanley-forecasts-30-gdp-contraction-12-8-unemployment-rate-in-q2/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+EconomicCollapseNews+%28Economic+Collapse+News%29
Geen opmerkingen:
Een reactie posten