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JP Morgan has revised its US gross domestic product (GDP) forecast to -2 percent annualized growth in the first quarter of 2020, and -3 percent in the second, as tweeted by CNBC contributor James Pethokoukis.
Essentially, the investment bank sees the US economy falling into a recession this year. An economy is said to be in a recession when the GDP growth rate is negative for two consecutive quarters or more.
Forecasts assume the government will deliver a $500 billion fiscal stimulus and suggests that GDP could return to positive in the third quarter if the coronavirus outbreak slows.
