Bank of America slashes US economic forecasts amid coronavirus - Business Insider

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'The deepest recession on record': Bank of America slashes forecasts, now sees up to 20 million jobs lost, 15.6% unemployment, and a shrinking economy for 3 straight quarters

Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.A view of Bourbon Street amid the outbreak of the coronavirus disease , in New Orleans, Louisiana, U.S. March 25, 2020.Bank of America now expects that US gross domestic product will contract for three quarters, with a cumulative decline of 10.4%, according to a Thursday note.

"This will be the deepest recession on record, nearly five times more severe than the post-war average," wrote Bank of America economist Michelle Meyer. The recession the US is facing triggered by the coronavirus pandemic could be the worst on record, according to Bank of America economists. In addition, as many as 20 million jobs could be lost due to the crisis, sending the unemployment rate to a high of 15.6%, according to the Thursday report.

After assessing consumer and other data over the last two weeks, Bank of America now sees first quarter GDP sinking 7%, and continuing that decline with a 30% drop in the second quarter. It will rebound slightly in the third quarter, but still end up -1%, according to the bank.

 

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It was predicted, sad but true, it will give a lessons to millions of people., specially high mid class.

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