U.S. GDP to See Annualized Contraction of 40% in Second Quarter: Citi

The video discusses the significant economic changes expected in 2020, highlighting a contraction of over 4% and a potential 10% drop in the second quarter. It explains how GDP data is annualized, resulting in a 40% contraction. The speaker emphasizes that this is an exogenous shock, unlike the 2008 financial crisis, and discusses the challenges of economic recovery. Rapid growth rates post-recovery may exaggerate improvements, and it will take time to return to 2019 levels.

What is the expected annualized contraction rate of the US economy for the second quarter of 2020?

• 40%

• 30%

• 20%

• 10%

How does the economic shock of 2020 differ from the 2008-2009 financial crisis?

• It is a result of high inflation.

• It is due to a weak financial system.

• It is an exogenous shock.

• It is caused by a financial bubble.

What metaphor is used to describe the recovery process from the economic downturn?

• A cooking recipe

• A chess game

• A construction project

• A marathon race

Why might rapid growth rates following a deep economic drop be misleading?

• They exaggerate the improvement.

• They reflect a stable economy.

• They show consistent profit levels.

• They indicate a permanent recovery.

When is the US economy expected to return to the activity levels of 2019?

• By the end of 2020

• In a long time

• In a few months

• Immediately after the downturn