Goldman sees 15% jobless rate and 34% GDP decline, followed by the fastest recovery in history
Goldman Sachs has revised its view for how the coronavirus will impact the U.S. economy, seeing a sharper downturn than originally thought followed by an even bigger upturn.
Among its expectations are that the unemployment will peak around 15% later this year, well above original expectations for 9%. Gross domestic product is forecast to fall 9% in the first quarter followed by a stunning 34% plunge in the second quarter that would be by far the worst period in post-World War II history.
After that, Goldman expects the U.S. to see a spike higher in activity, featuring a 19% surge in Q3. That would take the U.S. from the worst quarter in history to its best.
Economists at the firm cite “anecdotal evidence and the sky-high jobless claims numbers” to back its unemployment forecast. Nearly 3.3 million Americans filed first-time …continued .
[Source: CNBC News]