Goldman Sachs warns US GDP should collapse by 5% in Q1 and 24% in Q2

US, WASHINGTON (ORDO NEWS) — Coronavirus Crisis Having No Comparable Precedent, Analysts Unsure How to Address the Impact on Growth, But What Is Sure, The Forecast Is Ever Growing darker.

Last week, the famous bank Goldman Sachs (NYSE: GS ) had lowered its growth forecast for the United States for Q1 to 0%, and its forecast for Q2 to -5%.

However, the bank has already announced a downward revision of its forecasts this Friday, and these new forecasts have been drastically reduced.

The bank therefore now anticipates an annual contraction in US GDP of -6% in Q1, and -24% in Q2!

Recall that yesterday, the JP Morgan bank had in turn anticipated a fall in GDP of 4% in Q1, then 14% in Q2, for a GDP down -1.5% over the whole of 2020 , in taking into account hypothetical rebounds in Q3 and Q4.

The bank’s chief economist for the US, Michael Feroli, also predicted that unemployment would increase to 6.25% by the middle of the year before falling to around 5.25% by the end. of the year with the resumption of economic growth.

These forecasts assume that the Fed will continue to find “creative” ways to support the economy and that the Trump administration and Congress will provide $ 1 trillion in tax support.

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