A new economic-growth estimate from JPMorgan projects that a recession will hit the US and European economies by July.
The bank said its views of the coronavirus outbreak “have evolved dramatically in recent weeks.” JPMorgan economists now expect US GDP to shrink by 2% in the first quarter and 3% in the second.
Eurozone GDP could contract by 1.8% and 3.3% over the same periods, the economists added.
The “sudden stop” to economic activity through quarantines, event cancellations, and social distancing contributed to the downward revision, alongside recent weeks of financial-market chaos.
“As we resign ourselves to the inevitability of a large and broad-based shock,” nations’ economic policy responses are key to preventing an even longer downturn, the economists added.
FAUCI SAYS PREFER A 14-DAY NATIONAL SHUTDOWN OF SOME SORT TO SLOW DOWN CORONAVIRUS
— First Squawk (@FirstSquawk) March 15, 2020