Sunday, April 12, 2020

JPMorgan now sees economy contracting by 40% in second quarter, and unemployment reaching 20%

Recently, economic advisors at J.P. Morgan released a dire economic forecast for the United States and its future economic situation. Specifically, their forecast is now foreseeing “a 40% decline in the nation’s gross domestic product for the second quarter and a surge in April’s unemployment rate to 20% with 25 million jobs lost” and this is primarily due to the increasing economic impact of the coronavirus. This Forecast has reached historic levels, with no modern precedent, and is a dramatic decline in America’s economic performance. This same forecast does predict a second-half recovery for the United States, with a third quarter growth rate of 23% and a fourth quarter growth rate of 13%, which will boost America’s economic performance. 

2 comments:

Sophia Ahmed said...

I do think these numbers could turn out to be true, especially the unemployment rates. I'm not sure about the growth rate predictions as it really all depends on how quickly this pandemic will come to an end, and for now there is no estimate on when the economy will re-open

Cody Gault said...

While we can't be sure about specific numbers, I do see the economy bouncing back drastically once the time is right. I personally don't think that this is going to happen until the fourth quarter however. For now we can track what's going on but making predictions seems hard from where we currently stand.