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JPMorgan sees US economy contracting next year as Covid-19 surge hits biz

The world's largest economy is expected to shrink at a 1% annualized pace in the January-to-March period, JPMorgan said in its 2021 U.S. outlook issued Friday

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White House economic adviser Larry Kudlow said Friday that he expects the V-shaped recovery to continue beyond January, saying in remarks to reporters that “the economy has tremendous momentum.”

Reade Pickert | Bloomberg

3 min read Last Updated : Nov 20 2020 | 11:14 PM IST

JPMorgan Chase & Co. analysts are forecasting a U.S. economic contraction next quarter as various states impose restrictions on businesses and activity amid a record surge in Covid-19 cases.

The world’s largest economy is expected to shrink at a 1% annualised pace in the January-to-March period, JPMorgan said in its 2021 U.S. outlook issued Friday. That would follow estimated growth of 2.8% in the fourth quarter and the reported 33.1% expansion in the third quarter, which came after a record contraction in the prior period.

“While the economy powered through the July wave, at that time the reopening of the economy provided

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