Goldman Sachs anticipates a serious economic downturn
US, WASHINGTON (ORDO NEWS) — The controversy over the US stimulus package and massive government restrictions to curb the corona virus are causing European stock markets to plummet again at the start of the week. The Dax lost up to five percent to 8480 points. The US became increasingly the focus of investors.
“The United States is now threatening to become the new epicenter of the corona pandemic after Europe,” said Jochen Stanzl, market analyst at CMC Markets. Goldman Sachs now anticipates a slump in real US gross domestic product of just under a quarter in the second quarter.
“The corona crisis – or more specifically, the answer to that crisis – is a physical, as opposed to financial, constraint on economic activity that is unprecedented in post-war history,” said Goldman Sachs.
The investment bank expects the global economy to decline of around one percent this year.
This is a stronger economic downturn than in the year after the global financial crisis in 2008. Morgan Stanley analysts also warned of serious damage to the global economy due to the increasing spread of the new lung disease.
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