JP Morgan Predicts Possible Economic Outcome Following COVID-19

There is no denying our nation (and other nations globally) are wondering what type of economic fallout might be produced from the coronavirus. With growing uncertainty surrounding the months following the coronavirus “stay at home” orders, the future economic forecast predictions can be unsettling. However, JP Morgan strategists seem hopeful.

“Governments are acting with extreme measures to contain the virus, and that is broadening the disruption with an unprecedented downturn in economic activity. The key outlook issue now is gauging the depth and the duration of the 2020 recession,” said Bruce Kasman, Chief Economist for J.P. Morgan. (JP Morgan.com)

Assuming the quarantine restrictions will last only until mid-year, the economic downfall will be short-lived which historically allows a greater outcome for fast economic recovery. Typically recessions are measured by either U-shaped or V-shaped. U-shaped recessions tend to take longer to recover with a less clearly defined low-point. A V-shaped recession occurs when the economy suffers a temporary but intense dip, and typically quickly and strongly recover.

“An “always hoped-for” V-shaped recovery could be on the way and bring economies roaring back from their coronavirus-inflicted slumps, JP Morgan strategists stated” (Business Insider).

At the moment it is too early to determine what the end economic result of COVID-19 will produce, but once the threat is contained we can get a better understanding of how quickly our economy can recover from the 2020 recession.