USD GDP: It will get much worse – Nordea

Q1 GDP came in at -4.8 % q/q annualized, the worst since Q4 2008. It will, however, be much worse in Q2, according to analysts at Nordea.

Key quotes

“Q1 GDP came in at -4.8 % q/q annualized, the worst since Q4 2008 with personal consumption unsurprisingly collapsed by 7.7% q/q ann. in line with recent data from retail sales and auto sales.” 

“We project Q2 GDP at -31% q/q ann., thereby ending the longest expansion in US history.” 

“Overall, we expect a U-shaped recovery with 2020 GDP growth at 5%.”