The United States is already in a recession, 45 economists say

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

The United States is already in a recession and will remain that way for the first half of the year, according to a survey of 45 economists.

The economists predict a sharp, short recession for the first half of 2020 as the coronavirus pandemic “severely restricts economic activity,” the survey from the National Association for Business Economics found.
Economic growth likely fell at a rate of 2.4% in the first quarter, the NABE anticipates, and will decline a staggering 26.5% in the second quarter.
The US labor market will also take a major hit as the coronavirus outbreak shutters businesses. The NABE says the unemployment rate is expected to spike to 12% by midyear, while the United States may lose 4.58 million jobs in the second quarter.
That job loss will drag on spending, a major driver of the US economy. Consumer spending accounts for roughly 70% of economic growth.
close dialog
privacy policy.
Despite the abrupt downturn, the economists are optimistic the economy will bounce back in the latter half of 2020, growing at a rate of nearly 6% by the end of the year.
“The median forecast suggests conditions will improve by the end of the year with support from aggressive fiscal and monetary stimulus,” said NABE President Constance Hunter.
The Federal Reserve on Thursday announced an additional $2.3 trillion in loans for small businesses and consumers. This move comes on top of numerous other lending programs at the central bank, and cutting interest rates to zero in an effort to prop up the US economy.
Home of Science
Follow me

- Advertisement -




‘Bond King’ warns the stock market could hit new lows amid ‘social unease’

‘I’m certainly in the camp that we are not out of the woods... I think a retest of the low is very plausible.’ That’s the...

What Will Be the Hottest Shows of 2020?

What Will Be the Hottest Shows of 2020?Here are the hottest shows of 2020. Some are already taken and others will be dropped...

Stocks rebound after another uptick in job losses — what Cramer, a former Google CEO and others see ahead

The market’s internal push-and-pull became clear on Thursday. Stocks ended the day higher despite another weaker-than-expected jobs report that sent the major averages lower earlier...

Retail Stores Should Become Large Vending Machines by Installing Micro-Fulfillment Centers

In April, retail sales fell by 16.4%. This is higher than the 12.3% sales decline estimated by economists. Not since the great depression has...

Coronavirus effect could be ‘far deeper than the subprime crisis,’ says mortgage company CEO

KEY POINTS Borrowers with government-backed mortgages, through Fannie Mae, Freddie Mac, the FHA or the VA,  are entitled to a loan forbearance plan under...
Home of Science
Follow me