Goldman Sachs Slashes Economic Forecasts

Goldman Sachs is now projecting a massive U.S. economic contraction in the second quarter of the year, Barrons reports.

“The bank is forecasting a 24% decline in economic activity next quarter, compared to their previous forecast for a 5% decline. That’s because U.S. economic data (specifically manufacturing data) have already started to miss economist estimates, even before Americans started to stay home to avoid spreading the coronavirus.”

“If Goldman’s economists are right, that means the U.S. is approaching the sharpest single-quarter decline in gross domestic product since the U.S. started measuring GDP in its current form.”