Economics

Morgan Stanley, Goldman See Virus Causing Greater Economic Pain

Morgan Stanley predicts 30% drop in U.S. second quarter GDP
Goldman Sachs forecasts deeper recession than 2009 crisis

Morgan Stanley Expects U.S. GDP to Plunge 30% in Second Quarter

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By Simon Kennedy

March 22, 2020 at 8:45 PM UTC

Updated on

March 23, 2020 at 6:48 AM UTC

This article is for subscribers only.

Morgan Stanley and Goldman Sachs Group Inc. economists said the coronavirus will inflict greater economic pain than they previously expected as they warned of a record plunge in the U.S. output in the second quarter and a deeper global recession.

Morgan Stanley’s U.S. economists led by Ellen Zentner told clients in a report on Sunday that they now see American gross domestic product falling at an annual rate of 30.1% in April-June. That will drive up unemployment to average 12.8% over the period, they said.