JPMorgan lowers US growth forecast further for Q1, Q2 to -10%, -25% respectively

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JPMorgan lowers US growth forecast further for Q1, Q2 to -10%, -25% respectively

Later this week, the NY-based United States’ largest lender, JPMorgan Chase & Co., had lowered US GDP forecast further for the first and second quarter of 2020, as the number of coronavirus-infected patients in the United States had surpassed 100,000 and more state and local authorities had been issuing a “stay at home” order in order to slow down the spread of the highly contagious coronavirus which had led to the death of more than 30,000 people across the globe over the past few weeks and infected over 662,000 as of Saturday (March 28th) night.

Amid such vivid demonstration of resounding debarkations of a recessed US economy what analysts said could nosedive US economic growth to a 74-year-low figure this year, later this week, a chief US economist at JPMorgan, Michael Feroli wrote in a client note that the world’s eighth-largest lender in terms of assets, had been expecting the US economy to be contracted by 10 per cent in Q1, 2020, and by 25 per cent in the second quarter of this year.

Meanwhile, as JPMorgan had lowered its estimate for real US Gross Domestic Product in 2020 from an earlier projection of a contraction of 4 per cent in the first quarter and another contraction of 14 per cent in the Q2, 2020, made earlier this month, JPMorgan’s Feroli wrote in the client note, “The economic effects are broadening from activities that lack social distance — travel, theatres, etc — to those that lack social distance in production — a much vaster swath of the economy.

” Besides, the JPMorgan report had also added that the Wall St. lender had been expecting the US unemployment rate to rise above 8.5 per cent this year.