JPMorgan forecasts a global economic recession because of the pandemic

Financial group JPMorgan expects the pandemic coronavirus will result in the economies of USA and Europe a deep recession that will be felt already in the middle of summer.

JPMorgan прогнозирует глобальную экономическую рецессию из-за пандемии

Reported by Business Insider.

“The largest U.S. Bank expects the pandemic coronavirus deepen the US economy and Europe into a deep recession this summer”, — stated in the message.

JPMorgan forecasts have changed significantly in recent weeks, since the outbreak of coronavirus, has spread worldwide and caused the worst stock market trading in recent decades.

According to forecasts by JPMorgan, the US Stock Market and economy will shrink by 2% in the first quarter and 3% in the second, and the Eurozone economy is expected to contract 1.8% and 3.3% respectively.

As noted, the first outbreak was short-lived, but devastating blow to the global economy, but recent events have led to a sharper fall in the global economy in the first half of the year and the beginning of a new global recession.

In order to avoid an even more severe blow to the global economy, governments need to adopt incentive measures: reduction of stress in the financial markets and support consumer demand through monetary policy.

The increase in the deficit would risk provoking a decline, which will continue throughout the 2020, analysts say.