The largest US bank called the consequences of the economic crisis that overtook the world’s first economy.
Michel Meyer, economist at the Bank of America conglomerate, pointed out that already in the second quarter of this year, US gross domestic product will be reduced by 12 percent. According to her, the economic crisis will entail an increase in unemployment in the United States. Each month, the number of unemployed will grow by about one million people. The situation is aggravated by the fact that accumulations are practically worthless.
“We officially declare that the [US] economy has been hit by a recession,” Meyer stated, noting that now the States “have joined the rest of the world.”
As News Front previously reported, at the end of last year in China, the first outbreaks of coronavirus infection, which later became known as COVID-19, were recorded. Already in 2020, the disease spread throughout the world and acquired the status of a pandemic. In this regard, economic growth slowed down.
The situation was aggravated by the collapse in oil prices due to reduced demand and overpriced supply. An attempt to limit the extraction of raw materials within OPEC failed. So in the world the fourth oil war began in the last 35 years.
For the United States, the situation is aggravated by the fact that a significant part of US oil production is the shale segment, which becomes unprofitable in the face of a collapse in prices. Shares of US oil companies collapsed up to 50 percent.