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Felicia Tan
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Stocks
June 26 14:26

S&P adjusted its forecast for the U.S.

S&P adjusted its forecast: US GDP to decline to 5% from 5.2% at year end.
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The international rating agency S&P Global Ratings (S&P) has changed its forecast on decline in the U.S. economy for the current year to 5% from expected 5.2% in the last report, the agency said.
At the same time, the forecast for 2021 was lowered: now analysts predict the growth of the country's economy next year by 5.2%, which is 1 percentage point less than expected in April. The agency also gave the forecasts for 2022-2023, which were higher than in April. In 2022, according to S&P, the U.S. GDP will grow by 3% instead of the previously expected 2.5%, and in 2023 growth will be 2.8% against the previous forecast of 2.4%.
At the same time, S&P notes that the process of recovery of the American economy will face obstacles, as fears of a "second wave" of coronavirus will force Americans to continue to maintain physical distance from other people - for example, to choose a home dinner instead of going to a restaurant.
Thus, S&P now expects the year-end unemployment rate to be 9.3% instead of the previously expected 8.8%. In 2021, the figure, according to the agency, will be 7.2% against the previous estimate of 6.7%. In 2022, the agency expects the unemployment rate to be 5.3% instead of the April estimate of 5.4%.