Bloomberg experts predicted the worst economic downturn in US history

Economists expect that the U.S. GDP in the second quarter of this year will decline by 25% in annual terms, and it will be the worst fall in the history of the country. About this on Friday, April 10, writes the agency Bloomberg.

Journalists conducted a survey among 69 economists on how the financial system of the United States will respond to the coronavirus pandemic and what will happen to the level of unemployment in the state.

“Even if the economy reopens in mid-May, more than 20 million Americans will lose their jobs. The drop in GDP from its peak to its potential minimum is about 13%, which will be three times greater than during the global financial crisis,” said James Knightley, an economist with ING Financial Markets.

According to Bloomberg, the Bureau of Economic Analysis of the U.S. Department of Commerce is expected to regard the current situation as the first recession in the country since the global financial crisis of 2007-2009.

According to economists, unemployment in the U.S. will be 12.6% in the second quarter and will reach a record level since the 1940s. It is expected that this value will gradually decline and in two years the unemployment will reach 5.4%.

Bloomberg adds that the survey of economists was conducted from 3 to 9 April, when the U.S. Department of Labor reported that the number of applications for unemployment benefits in the U.S. for the week to April 4 fell to 6.606 million after several weeks of growth.

On March 28, U.S. President Donald Trump signed a $2 trillion stimulus law as the new coronavirus spreads.

On the same day, a quarter of Americans surveyed by Reuters said that they lost their jobs because of the coronavirus.