With a $ 20.2 trillion national income (Gross Domestic Product / GDP), estimates for the world’s largest economy, the United States of America (the US), have sparked.
DISASTER SCENARIO FOR AMERICA: IT WILL DECREASE 24 PERCENT
According to investment bank Goldman Sachs (GS), the USA will shrink 6 percent in the first quarter and 24 percent in the second quarter due to the sudden stop in the economy with the coronavirus outbreak.
GS stated that America could grow by 12 percent in the third quarter (July-August-September) and 10 percent in the last quarter. The unemployment rate is expected to increase to 9 percent.
Accordingly, the US economy will shrink by 3.8 percent in 2020. This rate corresponds to a loss of $ 550 billion.
Economists emphasized that decisions such as the closure of many schools, shops, institutions and factories bring daily life to a halt and a sudden increase in unemployment will be seen.
Pointing out that there will be historical declines in spending, economists state that the world economy is facing one of the rare crises in which the demand shock and the supply shock are seen at the same time.
Morgan Stanley also predicted that the US economy could contract by 30.1 percent in the second quarter of the year due to the effects of the Coronavirus.
UNEMPLOYMENT WILL BE 30 PERCENT!
St. Louis Bullard (Fed) President James Bullard said that the unemployment rate in the US could climb to 30 percent in the second quarter due to the coronavirus outbreak.
Speaking on Sunday, March 22, in a telephone interview, Bullard said, “Everything is on the table, up to additional lending programs for the Fed. We can do more in case of need in the current emergency authority. Much more will come in the coming months, depending on what direction Congress wants to go. ” said.
According to Bullard, GDP may fall 50 percent.