Coronavirus: First quarter GDP in most major countries may decline about 6% – Charles Schwab

The most widely used measure of economic activity, gross domestic product (GDP), will soon be released for the first quarter by different countries, per Charles Schwab.

Key quotes 

“First quarter GDP in most major countries may decline about 6%, due to business closures for about 15% of the quarter, assuming GDP fell 40% during the shutdown.”

“Second quarter GDP reports may benefit from any return of economic activity as well as monetary and fiscal stimulus.”

“Because the economic freefall resulting from the shutdowns to contain the spread of COVID-19 straddled the first and second quarters, its possible neither first nor second quarter GDP reports will fully capture the sudden shock to the  economy that the markets reacted to in February and March.”