JPMorgan predicts staggering 40% GDP drop, 20% unemployment in 2nd quarter

by Adam Ford · Apr 12th, 2020 7:27 am

Last Updated Sep 7th, 2020 at 11:45 pm

JPMorgan economists are predicting a devastating 40% drop in U.S. GDP in the second quarter, coupled with a 20% unemployment rate, as the economy continues to be paralyzed by government-ordered lockdowns amid the coronavirus pandemic.

A GDP implosion of 40% would be historic. The worst quarterly drop of the Great Recession was 8.4%.

The highest unemployment rate ever was around 25% during the Great Depression.

Morgan predicts the total job loss due to COVID-19 to number 25 million.


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