Historical Decline Goldman Sachs shared his expectations regarding the Coronavirus a few days ago and stated that the US economy could shrink by 24% in the second quarter of the year. However, Goldman Sachs made a new prediction and announced that a much sharper decline could be seen. According to CNBC’s report, Goldman Sachs predicts that the US economy will shrink by 34% in the second quarter of the year. Goldman Sachs is of the opinion that the unemployment rate across the country may increase up to 15% in this process. A similar estimate was made the day before St. Louis Fed also made it, stating that 47 million people across the US may remain unemployed because of the coronavirus. The US economy had shrunk by 10% in the first quarter of 1958, and this is now considered the worst quarter the US had experienced after World War II. In addition, we can say that the US economy shrank by 8.4% even in the fourth quarter of 2008. Therefore, if the prospect of 34% shrinkage by Goldman Sachs is correct, the US economy will suffer great damage. However, Goldman Sachs also predicts that the economy will recover rapidly after the second quarter. Third Quarter Forecast Goldman Sachs experts think that the US economy will be relieved with the policies pursued by the Fed and the effects of the Coronavirus. According to the analysis of Goldman Sachs, after the economy contracted by 34% in the second quarter, it can grow 19% in the third quarter. Goldman Sachs expects the economy to return to normal in the third quarter. However, despite this recovery in the third quarter, the US economy is expected to shrink by 6.2% throughout the year.
