May Market Review: 2020 COVID-19 Recession Projected to be Severe, but Brief
May 13, 2020
Our Market Review is a monthly publication which provides an overview of recent market activity across various asset classes. The Market Review highlights recent economic data and market trends in both the domestic and international markets.
Following a record-long 11 years of U.S. economic expansion, the economy swiftly plunged into a downturn as aggressive social distancing policies put in place to combat the spread of COVID-19 brought many industries to a near standstill. The global and U.S. economies are projected to experience recessions this year, based on the widely used definition of a recession as two consecutive quarters of economic contraction.
The International Monetary Fund (IMF) expects the "Great Lockdown" 2020 recession to surpass the 2008-2009 Global Financial Crisis (GFC) as the worst global recession since the Great Depression. The IMF projects 2020 economic activity will contract by 3.0%, 5.9%, 7.5%, and 1.0% in the world, U.S., euro zone, and emerging markets, respectively. Under the IMF's projection, the cumulative loss in global economic output in 2020 and 2021 will total $9 trillion, more than the economies of Japan and Germany combined.
Learn more about how 2020 is unlike any other recessions, the U.S. economic growth forecast, and more in our May Market Review.