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Coronavirus will hit US economy harder than 2008 financial crisis: J.P. Morgan
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J.P. Morgan is calling for a sharper U.S. economic contraction in the second quarter, due to the COVID-19 pandemic, than the country experienced during the worst of the 2008 financial crisis.
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The firm sees the U.S. economy shrinking by 5.3 percent from January through March and 14 percent during the following three months. By comparison, the U.S. economy contracted by 7.2 percent during the fourth quarter of 2008, its worst of the global financial crisis, according to the St. Louis Fed.
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Still, a sharp snap back to 6 percent growth in the third quarter of this year and 2.3 percent in the fourth leaves the long-term outlook less dire than both the worst year of the financial crisis and the earliest years for which data is available on the Great Depression.