US economy will take at least 18 months to return to pre-COVID-19 levels, Bank of America CEO predicts and he says consumer spending is beginning to grow with stimulus bills starting to have an effect
- Analysts predict the US economy will return to pre-coronavirus levels by the fourth quarter of 2021, says Bank of America CEO Brian Moynihan
- Moynihan says forecasts recently changed ‘dramatically’ as the economy went from likely having some low growth to an expected 6 per cent loss this year
- The CEO, however, expressed confidence that as each quarter passes the economy will return and start growing again
- There have been more than 978,100 confirmed cases in the US of the coronavirus, which has been blamed for more than 55,000 deaths
- Here’s how to help people impacted by Covid-19
The US economy will bounce back to pre-coronavirus levels by the end of next year, says the head of Bank of America.
Analysts are predicting the economy will return to where it was before the pandemic began by the fourth quarter of 2021, says Bank of America CEO Brian Moynihan.
Moynihan noted that forecasts changed ‘dramatically’ over the last five weeks as the economy went from likely having some low growth to an expected 6 per cent loss this year.
Analysts are predicting the economy will return to where it was before the coronavirus pandemic began by the fourth quarter of 2021, says Bank of America CEO Brian Moynihan
Moynihan, however, expressed confidence during an interview on CBS’ “Face the Nation” news program Sunday that as each quarter passes the economy will return and start growing again,
‘Our experts think it’s late next year the economy gets back to the same size it was prior to this,’ Moynihan said.
So far, there have been more than 978,100 confirmed cases in the US of the coronavirus, which has been blamed for more than 55,000 deaths.
There have been more than 978,100 confirmed cases in the US of the coronavirus, which has been blamed for more than 55,000 deaths
A look at how the number of new coronavirus cases in the US has escalated over time
A look at how the number of new coronavirus infections in the US has escalated over time
A day-to-day look at the number of deaths attributed to the coronavirus in the US
Consumer spending for the moment is flat compared to the same period in 2019, Moynihan told the news program. But the numbers this year can be looked at in two parts, he adds, referring to a “tale of two pieces of time” with high spending earlier in the year.
And, Moynihad explains, consumer spending is ‘starting now to grow in certain areas.’
‘[That actually provides some hope that the economy opens up in pieces and safely you’ll see that consumer spending continue to grow which will help fuel the US economy,’ he said.
The Stimulus bills approved by Congress, sales of personal protective equipment, or PPE, unemployment benefits and stimulus checks have all started entering the economy, and ‘we’re starting to see the effect of those,’ Moynihan says.
The Stimulus bills approved by members of Congress (pictured), have started having an effect on the economy, says Bank of America CEO Brian Moynihan
Moynihan says sales of personal protective equipment, or PPE (pictured), are starting to have an effect on the US economy, among other factors
Stimulus checks are starting to enter the US economy, says Bank of America CEO Brian Moynihan
The US has seen jobless claims for unemployment benefits reach at least 26 million in the five weeks since the outbreak prompted state governments to order non-essential workers to stay home, forcing related businesses to close down while waiting out the pandemic’s run.
There were 4.4 million new claims for unemployment benefits filed last week, according to the latest Labor Department figures released on Thursday.
It added to the nearly 22 million people who had already applied for unemployment aid in the previous four weeks.
About one in six American workers have now lost their jobs since mid-March, by far the largest streak of US job losses on record.
The US has seen unemployment claims reach at least 26 million in the five weeks since the outbreak prompted state governments to order non-essential workers to stay home. Out-of-work Americans line up to file for unemployment in Fort Smith, Arkansas earlier this month