The new coronavirus global pandemic is causing businesses around the world to shut their doors, having emerged from China. While the business shutdown can slow the spread of the virus, it’s also taking cash out of the pockets of businesses and workers. That has economists slashing their expectations for upcoming months, and Wells Fargo Securities said Monday it now projects the U.S. economy will fall into a recession in the April-through-June quarter. Joel Prakken, chief U.S. economist at IHS Markit, projects the economy will shrink at a 5.4 percent annualized rate during the quarter, which would be its worst performance since the depths of the Great Recession. The best-case scenario for many investors is that the economic shock will be steep but short, with growth recovering later this year after businesses reopen.

Source: The Standard March 17, 2020 03:00 UTC