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Riku Tanaka
April 3 22:00

Morgan Stanley: U.S. economy to contract at the quickest rate in over 70 years, unemployment to exceed 15%

The US bank had cut its Q1 estimate.
The US economy is predicted to shrivel by as much as 5.5% this year, the sharpest drop in 7 years, with an overwhelming 38% plunge anticipated in Q2 2020, according to today’s (Apr 3) report by Morgan Stanley as part of a fresh collection of predictions on the fiscal harm caused by the coronavirus crisis.

The US bank had cut its Q1 estimate to an annualized 3.4% drop from a past figure 2.4%, while in Q2, the US economy is anticipated to plummet by as much as 38%, up from the previous estimate of 30%.
The unemployment rate in the United States is predicted to hit its zenith at a record-breaking 15.7% in the Q2 of 2020, which is up from the prior 12.8% estimate made by the bank's financial experts. This equates to a rise in the total number of people to face joblessness to estimated 21 million for Q2, as per Morgan Stanley.
The estimates that were issued by the US Congressional Budget Office also stated that the country’s GDP will fall by 7% or more in Q2 2020, as the effects from the COVID-19 pandemic continue to ravage the nation.