Deutsche: Prepare for worst slowdown since World War 2
More gloom! Deutsche Bank has forecast a severe global recession will occur in the first half of 2020.
In a new report, it says aggregate demand has plunged in China in the current quarter, and will plunge in Europe and the US in April-June.
They warn:
The quarterly declines in GDP growth we anticipate substantially exceed anything previously recorded going back to at least World War II.
But... they also predict that governments will fight back:
The fiscal response could turn out to be huge, with serious discussion in the US of stimulus packages amounting to 6% of GDP on top of already significant automatic stabilizers. In Europe, the fiscal rules have been effectively suspended and leaders pledge to spend “whatever it takes”.
So, their new forecasts show a precipitous slump in growth, but then a recovery:
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