World economy enters recession, but economists predict strong rebound. It was a good run — actually the best in history — but the economic expansion that started more than a decade ago is expected to come to a screeching halt with the spread of the COVID-19 pandemic.
In a March 16 white paper, Oxford Economics, which specializes in economic forecasting and quantitative analysis, noted that there’s no question as to where the economy stands. “The U.S. economy is in a recession. The coronavirus pandemic will lead to profound, pervasive, and persistent, but not permanent reductions in activity,” researchers said. “Our new baseline, to be released Friday, will show real U.S. GDP growth at zero in 2020, down from our forecast for annual growth of 1.7% pre-virus.”
The firm added that its pandemic scenario has global growth grinding to a halt in Q2, but within a year the global economy will rebound to a 5% rate of expansion. But that’s all dependent on the length of the pandemic, according to the report.
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