The U.S. economy is struggling right now.
On Thursday, we learned that initial filings for unemployment insurance totaled a record 6.648 million for the week ending March 28, more than doubling the prior week’s reported total of 3.238 million that had also marked a record high. Distressingly, last week’s data was also revised higher on Thursday to 3.307 million.
And while the labor market fallout from the coronavirus-related economic hard-stop we’re experiencing has been the most abrupt and severe so far, economists at Bank of America Global Research believe the broader economic downturn we’re entering will result in the worst recession in modern U.S. history.
London (CNN Business)After a dismal winter, China’s economy is showing signs of life. But a recovery in Asia won’t paper over problems in the United States and Europe as the world sinks into recession.
See here: Goldman Sachs has significantly downgraded its outlook for the US economy between April and June. The investment bank now expects an annualized rate of contraction of 34% compared to the previous quarter. The last estimate was an already-shocking 24%.
Goldman revised its forecast because it thinks the US labor market collapse will be even worse than anticipated. It now sees the unemployment rate rising to 15% by the middle of the year, compared to 9% before.
The bank has also updated its predictions for an economic rebound between July and September, which it thinks will be stronger than what it had last penciled in. But in the interim, Wall Street is clearly bracing for pain.
IMF: “Humanity’s darkest hour.” The coronavirus has brought the global economy to a standstill and plunged the world into a recession that will be far worse than the global financial crisis a decade ago.
WASHINGTON/GENEVA (Reuters) – The coronavirus pandemic has brought the global economy to a standstill and plunged the world into a recession that will be “way worse” than the global financial crisis a decade ago, the head of the International Monetary Fund said on Friday, calling it “humanity’s darkest hour.”
The IMF’s managing director, Kristalina Georgieva, speaking at a rare joint news conference with the leader of the World Health Organization (WHO), called on advanced economies to step up their efforts to help emerging markets and developing countries survive the economic and health impact of the pandemic.