



"The economy will experience a sharp contraction in the second quarter of 2020 stemming from factors related to the pandemic, including the social distancing measures put in place to contain it," CBO Director Phillip Swagel wrote.



The CBO projects that things will rebound somewhat in the third quarter, with 23.5 percent annualized growth, followed by a projection of 10.5 percent growth in the final quarter of the year. The economy will shrink at an annualized rate of 39.6 percent in the second quarter, according to the latest projections from the nonpartisan Congressional Budget Office (CBO), its first to take into account the effects of the coronavirus pandemic."The economy will experience a sharp contraction in the second quarter of 2020 stemming from factors related to the pandemic, including the social distancing measures put in place to contain it," CBO Director Phillip Swagel wrote.The CBO projects that things will rebound somewhat in the third quarter, with 23.5 percent annualized growth, followed by a projection of 10.5 percent growth in the final quarter of the year.





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Unemployment is expected to reach nearly 14 percent in the second quarter and rise to a peak of 16 percent in the third quarter before dropping again. All in all, it predicts the economy will shrink by 5.6 percent for the year, and return to growth of about 2.8 percent in 2021.But, Swagel added, "challenges in the economy and the labor market are expected to persist for some time."Unemployment is expected to reach nearly 14 percent in the second quarter and rise to a peak of 16 percent in the third quarter before dropping again.