Bank of America Expects the U.S. Economy to “Collapse” in Q2 and About 3.5mn Jobs Lost

The Bank of America warned investors that the economic recession as a consequence of coronavirus outbreak has already come.

BOA economist Michelle Meyer expected the economy to “collapse” in the second quarter and to fall by 12%. While forecasted the 2020 GDP will contract by 0.8%.

Meyer stated on a statement, “Jobs will be lost, wealth will be destroyed and confidence depressed.”

Bank of America as well pointed out that the downturn in economic can understand through the unemployment rate as it could be increased doubly, about 1 million people will lost jobs each month during the second quarter, totaling 3.5 million unemployed.

The ongoing virus spreading already dragged down global economy especially tourist industry. The S&P 500 and Down Jones are now remains around 30% below the all-time high levels from just last month.

Meyer expected economy worsening till April and will “very slow return to growth thereafter with the economy feeling somewhat more normal by July.”…, “Although the decline is severe, we believe it will be fairly short lived,” Meyer added.