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 contraction of the US economy in 2020?

How does the current economic downturn compare to the prolonged downturn of 2008 and 2009?

What metaphor is used to describe the speed of economic recovery?

What is the implication of having extremely deep drops in economic activity?

When are we expected to return to the levels of economic activity seen in 2019?