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JPMorgan becomes first major bank to say first quarter GDP will decline because of coronavirus surge

November 20, 2020


JPMorgan economists now see an economic contraction in the first quarter due to the spreading coronavirus and related restrictions being imposed by states and cities.

The new forecast is a departure from Wall Street’s widely held view that the first quarter would be positive, with an improving economy throughout 2021.

The JPMorgan economists said they expect the economy to expand briskly in the second and third quarter, based on positive vaccine developments.

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