JP Morgan forecasts a US recession for 2020

Omkar Godbole FXStreet Contributor

JP Morgan has revised its US gross domestic product (GDP) forecast to -2 percent annualized growth in the first quarter of 2020, and -3 percent in the second, as tweeted by CNBC contributor James Pethokoukis.

Essentially, the investment bank sees the US economy falling into a recession this year. An economy is said to be in a recession when the GDP growth rate is negative for two consecutive quarters or more.

Forecasts assume the government will deliver a $500 billion fiscal stimulus and suggests that GDP could return to positive in the third quarter if the coronavirus outbreak slows.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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