JPMorgan Economists Warn of GDP Contraction in Q1

As the world faces an inevitable winter, it also faces economic uncertainty.  On Friday, November 20th, JPMorgan economists warned of a potential decline in GDP in the first quarter of 2021.  They are the first major bank to predict a decrease for the quarter, as most Wall Street economists are preparing for GDP expansion in Q1.  JPMorgan attributes this potential contraction to a sudden rise in COVID-19 cases in the U.S., including a peak of almost 200,000 new cases on November 20th, as well as imminent restrictions being put in place to stop the spread at the state and local levels.  JPMorgan projects about a 1% GDP contraction for Q1, then increases by 4.5% and 6.5% for Q2 and Q3, respectively.  The economists also project the Federal Reserve injecting about $1 trillion into the economy to offset the economic stagnation associated with the most recent COVID-19 case spike.  Overall, there is a general uncertainty associated with the economy now. Daily cases of COVID-19 are near a peak and the status of when vaccines to treat the virus will be readily available are up in the air.  It is important to be aware and up to date on our economy.  If you are interested in reading more about the JPMorgan GDP forecast, check out the article linked below

https://www.cnbc.com/2020/11/20/jp-morgan-says-first-quarter-gdp-will-decline-because-of-rising-covid-cases-and-restrictions.html

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