Goldman Sachs Predicts ‘Unprecedented’ 24% Drop In U.S. GDP Next Quarter

Economists from Goldman Sachs are forecasting a dramatic 24% drop in the nation’s gross domestic product in the coming months, as governments, businesses, schools and more announce increasingly strict measures to keep people at home and apart to try to slow the spread of coronavirus nationwide.   In an analysis released Friday, economists with the major…

Goldman Sachs Predicts ‘Unprecedented’ 24% Drop In U.S. GDP Next Quarter

Economists from Goldman Sachs are forecasting a dramatic 24% drop in the nation’s gross domestic product in the coming months, as governments, businesses, schools and more announce increasingly strict measures to keep people at home and apart to try to slow the spread of coronavirus nationwide.  
In an analysis released Friday, economists with the major bank revised their previous forecast of a 5% drop in U.S. GDP for the second quarter (April through June) to a 24% drop, citing expected declines in manufacturing activity and services consumption. If that materializes, it would be historic: In modern history, the largest quarterly decline in U.S. GDP was a 10% drop in the first quarter of 1958.
“The sudden stop in U.S. economic activity in response to the virus is unprecedented,” the economists wrote, adding that in just the last few days, “social distancing” measures across the country have “shut down normal life” and have already led to
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