Goldman Takes Out The Chainsaw: Cuts US Q2 GDP To -5%; Says Recession Has Begun

Read more on this subject: Economy – Recession-Depression
News Story Source: Zero Hedge – Tyler Durden
While it will probably not come as a surprise to anyone who read our earlier post to "Brace For A Record Decline in GDP", but moments ago Goldman – which last week called the bear market just hours before it officially materialized, and cut its year-end S&P price target to 2,450 which the S&P almost hit late on Thursday – finally capitulated on its optimistic take for the US economy, and in a note published moments ago by its chief economist Jan Hatzius, Goldman said that it expects US economic activity "to contract sharply in the remainder of March and throughout April as virus fears lead consumers and businesses to continue to cut back on spending such as travel, entertainment, and restaurant meals. Emerging supply chain disruptions and the recent tightening in financial conditions will likely add to the growth hit."

As a result, the bank is now expecting Q2 GDP to crater -5%, down from its prior forecast of 0%, and the biggest quarterly GDP contraction
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