Quote:
Unemployment will shoot up to 15 percent during the second quarter of the year, while gross domestic product (GDP) will fall at an annualized rate of 34 percent as the coronavirus pandemic ripples through the U.S. economy, according to forecasts Goldman Sachs released Tuesday.
The new outlook shows a deeper recession than an analysis from the investment bank last week, which predicted 9 percent unemployment and an economic trough showing a 24 percent decline.
Goldman Sachs is still predicting a "V-shape" recovery, however, meaning the steep drop-off will lead to a bigger bounce of 19 percent in the third quarter.
"Our estimates imply that a bit more than half of the near-term output decline is made up by yearend and that real GDP falls 6.2% in 2020 on an annual-average basis (vs. 3.7% in our previous forecast)," the forecast said
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Goldman Sachs new projections for Q2 drop from -24% GDP to -34%. Somehow they still have us shooting right back up with +19% Q3 GDP. I get we had a lot of stimulus but it's hard to imagine bouncing back to that level. I'd have been happy if we bounced back to flat growth.