Goldman Sachs says advanced economies will shrink by 35% in the second quarter - Business Insider

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Goldman Sachs says advanced economies will shrink by 35% in the second quarter but job losses are 'temporary'

Woman wearing a protective mask uses her mobile phone, as the coronavirus outbreak continues to grow in northern Italy, in Turin.Advanced economies will shrink about 35% in the second quarter of 2020 compared to the first three months, according to Goldman Sachs' chief economist Jan Hatzius.

The forecast contraction equates to four times as much as the previous record set in 2008 during the financial crisis, according to annualized figures from Goldman Sachs, and is causing a labour market implosion. While the number of new active coronavirus cases appears to be peaking across the globe, optimists might look at this as a signal to reopen the economy, but pessimists will counter that the main reason for this is social distancing, the note said.

 

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You are welcome to read my published paper on unemployment, especially the part that deals with crises. Long crises usually lead to closing business and elimination of jobs - not temporary at the short-run

Wow, I guess someone will be happy

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