US Recession begins
Bank of America officially announced that the US economy has entered a recession. This was stated by bank economist Michelle Meyer, reports CNBC.
“We officially declare that the economy has entered a recession by joining the rest of the world,” Meyer said.
Meyer predicts that the US is facing rising unemployment, consumer confidence is lost, and savings are virtually destroyed.
Moreover, according to her estimates, according to the results of the second quarter of 2020, the US economy, by quarter to quarter, will collapse by 12% of GDP, and by the end of the year it will decrease by 0.8%.
This forecast Bank of America made, evaluating the prospects of the labor market. According to Meyer, the US unemployment rate will double in the near future, and the number of unemployed will grow by about a million people a month throughout the second quarter, reaching a total of 3.5 million people.
However, the bank believes that the crisis will be short-term.
"Although the collapse is very tough, we expect it to not last long," Meyer said, noting that the state should not skimp on incentives for the economy.