Goldman Sachs slashes second quarter U.S. GDP estimate further

FILE PHOTO: The ticker symbol and logo for Goldman Sachs is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., December 18, 2018. REUTERS/Brendan McDermid/File Photo

(Reuters) – Goldman Sachs said on Tuesday that the U.S. second quarter economic decline would be deeper than it had previously forecast and unemployment would be higher, citing anecdotal evidence and “sky-high jobless claims numbers.”

Goldman said it is now forecasting a real GDP quarter-over-quarter decline of 34% annualized for the second quarter, compared with its previous estimates for a 6% decline and a 24% drop.

It sees the unemployment rate rising to 15% by mid-year compared with its previous expectation for 9%.

Reporting By Sinéad Carew, Editing by Franklin Paul

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