Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
collapse of the US economy
Economy

The collapse of the US economy is inevitable: expert opinion

08.11.2020
2 min read

The collapse of the US economy: crisis of what magnitude to expect

Despite the fact that experts had long talked about the instability of the world economy, all countries were not ready for a new crisis, exacerbated by the pandemic. Even superpowers cannot fully predict future developments and their consequences. Analysts predict the collapse of the U.S. economy and expect a 3-4% decline in GDP.
To soften the blow for the country, the Central Bank has reduced the key rate to minimum values. This is due to the fact that in the first half of this year the unemployment rate increased significantly, while GDP decreased. The same situation will be observed in the future. The worst scenario is a 14% drop, while the more optimistic scenario is a 4% drop.
Experts from Goldman Sachs, one of the largest investment corporations, say that GDP will decline by 24% and unemployment will rise by 9%. The U.S. economic crisis will continue for a long time, and its consequences will outpace the crisis of 2008, when GDP fell by 8.8%, which was considered a catastrophic figure.
However, analysts of the financial holding JPMorgan assess the current situation more positively. They argue that the American economy has all the necessary resources to quickly recover from the neutralization of the pandemic. In the financial conglomerate Morgan Stanley called the figure of 30%, which will no longer be considered a crisis, but a real depression.

collapse of the US economy

U.S. economist Jesse Colombo, who is known for his accurate predictions, also predicts a serious disaster.
The investment bank Bank of America said that the country will not be able to avoid the consequences and there are already processes of recession. Analysts predict that the unemployment rate will increase twice, consumer activity and financial reserves will fall significantly.
According to the Bank of America, in the first half of the year we should expect a decline in GDP by 12%, the number of unemployed will exceed 3.5 million people. However, the bank experts say that the crisis will not last long.
In view of current events, experts have revised their forecast for global economic growth. According to the new analysis, it will be not 1.6%, but only 0.4%. It is worth noting that the report has been corrected several times over the current time. For comparison, at the beginning of the year experts spoke about the increase by 2.6%. Now it is difficult to make assumptions about the future situation in the global economy, so the processes have not yet stabilized. One thing is obvious – the recession has already begun, and it is fully felt by the markets of the USA, Japan and the European Union. These countries account for quite a large percentage of world GDP.

Tags: Global Economy
0
Previous Post Brian Chesky, the founder of the online platform Airbnb, came to success Next Post The US imposes duties on aircraft from Europe

You Might Also Like

US economy
Economy
Why the US economy is the strongest in the world: an analysis
05.02.2025
New home sales in the U.S.-1
Economy
New home sales in the U.S. are falling: the reasons for the decline
01.07.2022
2% tax increase
Economy
How will the Japanese economy and population be affected by the 2% tax increase?
08.12.2020
inflation in the UK
Economy
Inflation in the UK will decline: analysts’ forecasts
03.06.2023
UK car production
Economy
UK car production drops to 1956 lows
02.05.2023
Swiss banks
Economy
Will Swiss banks be able to cope with technological advances?
10.06.2024

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Spain’s economy performs best in the EU
  • Li Ka Shing: How can success be achieved without money and education?

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Spain’s economy performs best in the EU
  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics