Coronavirus has slammed the US economy. GDP is expected to be sharply negative in the second quarter and economic data from March and April are pointing to a steep decline in activity.
“I certainly think we’re already in a recession,” Lindsey Piegza, chief economist at Stiefel, told Alison Kosik on CNN Business’ digital live show Markets Now.
How bad it will get will depends mostly on the depth and duration of this shutdown. But could America face another depression?
“I think we can avoid that as long as the economy begins reopening by May,” Piegza said.If it goes longer than that, we could be “in a very dire situation.”
Piegza says she expects a more U-shaped, rather than V-shaped recovery, with a slightly more prolonged recession. The reopening of the economy will likely be staggered, and it will likely take some time until consumer return to their pre-coronavirus behavior.
“Even after businesses reopen it’s going to take time for companies to reconnect with consumers,” she said.
All of that will delay a rebound in the economy.