U.S. entering coronavirus recession: S&P Global
By Niv Elis - 03/17/20 12:00 PM EDT
The U.S. could already be entering a recession because of the coronavirus pandemic, which has shuttered bars and restaurants and drastically changed American life, according to a Tuesday analysis from S&P Global.
"While economic data for March is just starting to be released, the severity of the blow from the coronavirus leads us to believe that the U.S. is entering recession — if not already in one," the financial company wrote in a research note Tuesday.
The note said the economy could shrink by 1 percent in the first quarter of 2020 with a huge 6 percent drop possible in the second quarter. Two consecutive quarters of economic contraction meet the technical definition of a recession.
The U.S. could already be entering a recession because of the coronavirus pandemic, which has shuttered bars and restaurants and drastically changed American life, according to a Tuesday analysis from S&P Global.
"While economic data for March is just starting to be released, the severity of the blow from the coronavirus leads us to believe that the U.S. is entering recession — if not already in one," the financial company wrote in a research note Tuesday.
The note said the economy could shrink by 1 percent in the first quarter of 2020 with a huge 6 percent drop possible in the second quarter. Two consecutive quarters of economic contraction meet the technical definition of a recession.
The analysis said the economy could swing back in the second half of the year, but the overall outcome is expected to be flat. Before the outbreak, S&P Global had predicted 1.9 percent growth this year.
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https://thehill.com/policy/finance/488005-us-entering-coronavirus-recession-sp-globalThe analysis said the economy could swing back in the second half of the year, but the overall outcome is expected to be flat. Before the outbreak, S&P Global had predicted 1.9 percent growth this year.
