Economists are increasingly pessimistic about the impact of the coronavirus on the U.S. economy but remain convinced that the economy will snap back in the second half of the year.
A survey by the Wall Street Journal found that economists think unemployment will rise to 17 percent in June. A month ago, the survey found economists expected unemployment to hit 13 percent in June–a forecast that fell short of the 14.7 percent we hit in April.
The survey also found that economists expect gross domestic product to contract 6.6 percent this year, measured from the fourth quarter of 2019. That significantly lower than the 4.9 percent forecast a month ago.
But 85 percent of economists say the economy will begin to grow again in the second half of the year. In fact, they’ve upgraded their view for third-quarter growth to an 8.5 percent annualized rate from 6.2 percent a month ago. The fourth quarter is expected to see growth at a 6.7 percent rate, essentially unchanged from the month-ago survey.
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