Covid-19 driven GDP contractions projected for US and Eurozone
22 July
The US GDP is projected to contract by 6% due to the economic downturn caused by the Covid-19 pandemic.
Foreign direct investment inflows from the US into China continue to rise despite these projections.
Robin Brooks, chief economist at Institute of International Finance, shared a chart on the expected GDP contraction in the US by 6%.
He added that the Eurozone GDP is expected to contract by 9%.
Brooks noted that a larger output gap and deflationary momentum is expected in the Euro zone as a result of the GDP contraction.