Wall Street has best day in two weeks as coronavirus optimism grows
Economists think the coronavirus recession will be short and sharp, followed by a rebound in the second half of the year. But it might not be quite that simple.
“Even allowing for a recovery in the second half of the year, we estimate that GDP growth for this year as a whole will be -5%,” said Paul Ashworth, chief US economist at Capital Economics, in a note.
He expects the economy wouldn’t see its true rebound until 2021, with 6.5% growth. “But there is tremendous uncertainty about exactly how bad the damage will be, not least because it depends on the growth in new infections,” Ashworth noted.
He anticipates a 40% annualized GDP drop in the second quarter, with the unemployment rate spiking to 12.5%.
Consumer spending, which is the backbone of the …continued .
[Original Source: CNN]