On Sunday, economists of Morgan Stanley predicted the US’ second-quarter economy to be hit by the new coronavirus pandemic more severely.
The country’s gross domestic product (GDP) is seen to plunge by 30.1% in the next quarter, with unemployment averaged at 12.8% and consumption slumping by 31%.
In the first quarter of 2020, the bank expected the GDP to drop by 2.4%.
“In March, economic activity has come to a near standstill as social distancing measures rose in more areas, combined with the tightening financial conditions,” the economists reported.
Going forward, Morgan Stanley estimated the GDP to start recovering in the third quarter. The fourth quarter’s GDP is likely to fall by 2.3%, driving the full-year global growth down to 0.3%.
In line with Morgan Stanley, JPMorgan Chase & Co. expected the country’s GDP to go down by 14% in the second quarter, Goldman Sachs Group Inc. forecast a 24% plunge, while Bloomberg Economics predicts a 9% tumble.
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Published on March 24, 2020 5:21 PM (GMT+8)Last Updated on March 24, 2020 5:21 PM (GMT+8)
