JPMorgan is now foreseeing a 40% decline in US gross domestic product for the second quarter on coronavirus impacts.
JPMorgan also sees surge in April’s unemployment rate to 20% with 25 million jobs lost as economists issued an even more dire forecast.
In an earlier forecast, they said second-quarter GDP would be down 25%.
The economists, however, are expecting a second-half recovery, based on the assumption that impact from the pandemic fade by June.
They note that the number of people seeking unemployment benefits has totaled 16.8 million in just three weeks.
However, they expect the third quarter to rebound with growth of 23%, and a fourth-quarter increase of 13%. They forecast a 10% decline in the first quarter. The economists said they will finalize their employment forecast for April in coming weeks.
