Bank of America Officially Announced That the Economy Has Recessed Due to the Outbreak
Bank of America, headquartered in Charlotte, warned its investors. In the warning, it was stated that the recession in the economy cannot be prevented due to the Coronavirus (Covid-19) epidemic and its effects are beginning to be seen.
Bank of America’s economist Michelle Meyer stated, “We are officially declaring that the economy has fallen into a recession … joining the rest of the world, and it is a deep plunge. Jobs will be lost, wealth will be destroyed and confidence depressed.” She emphasized how serious the situation was.
However, although Michelle Meyer says that the recession in the economy will have serious effects, she added that they believe that this decline will be short-lived. While it is expected that April will be especially difficult, the economy is expected to return to normal levels by July.
According to the Bank of America projections, the US economy will experience a 12% downsize in the second quarter. In terms of the whole year, GDP is expected to downsize 0.8%.
International credit rating agency Fitch Ratings, who made a statement recently as a precursor of this situation, reported that the financial situation of the countries will weaken due to the Coronavirus epidemic.
When we look at the explanations, the most important of the main economic results that come to the fore is emphasized as the sudden cancellation of the activities. This recession decision of Bank of America is a matter of curiosity how much it will affect Bitcoin and other cryptocurrencies.
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