Goldman Sachs predicts the coronavirus crash will be bigger than it originally thought.
In a Friday research note, the bank projected a 24 percent drop in the U.S. GDP in the second quarter — a stark revision from its prediction of a five percent drop earlier this week. Goldman Sachs does see a slight rebound in Q3 and Q4 of 12 percent and 10 percent, respectively, but that still leaves the GDP down 3.8 percent at the end of the year.
Goldman Sachs formulated its prediction by looking at past unemployment rates, the effects of Hurricane Katrina, and "job losses by sector and occupation." And it all forecasts a far more economically brutal future than the one the bank saw just a few days ago.