Covid-19 driven GDP contractions projected for US and Eurozone

22nd July 2020 (Last Updated July 22nd, 2020 08:28)

22 July

The US GDP is projected to contract by 6% due to the economic downturn caused by the Covid-19 pandemic.

Foreign direct investment inflows from the US into China continue to rise despite these projections.

Robin Brooks, chief economist at Institute of International Finance, shared a chart on the expected GDP contraction in the US by 6%.

He added that the Eurozone GDP is expected to contract by 9%.

Brooks noted that a larger output gap and deflationary momentum is expected in the Euro zone as a result of the GDP contraction.

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