The US economy will lose up to one percent due to the crisis, experts say
The financial crisis in the United States will be powerful, but will not last long, Bank of America analysts say.
The American investment bank, Bank of America, has announced a full-blown financial crisis in the United States, CNBC reported, citing a report by leading financial analyst Michelle Meyer.
According to her, it will not be possible to avoid a recession in the US economy.
вЂњWe officially declare that the American economy fell into recession, joining the rest of the world, and this is a very deep drawdown,вЂќ the analyst writes.
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. вЂњAlthough the collapse is very tough, we expect it to not last long,вЂќ Meyer writes, noting that the state should not skimp on incentives for the economy.
As reported, on the eve of the investment banks Goldman Sachs and Morgan Stanley announced the onset of the global crisis.