Bank of America warns of the worst recession on record
Bank of America has issued a statement concerning the impact of the coronavirus on the global economy. According to the analysts, the virus might result in the worst economic recession “on record”.
The bank has officially slashed its earlier forecast for the US economy. According to the new forecast, the nation’s GDP is likely to experience the reduction for three quarters and will fall by 10.4% by the end of the year. The recovery of the consumer spending might begin only in the third quarter.
Around 20 million jobs might be terminated because of the economic fallout. This will drive the overall unemployment rate in the country up to 15.6%. The analysts have stated, that the recession will be five times worse, than the average post-war figures.
The jobless applications in the country are currently rising to new record levels. Last week the figure has risen to 6.6 million.