Bank of America Predicts US economy at risk of shrinking in Q2

Bank of America (BofA) has issued a warning that the US economy could shrink in the second quarter of 2023 due to the ongoing COVID-19 pandemic. The bank's economists have revised their forecast, projecting a 1% contraction in the economy during the second quarter of the year.

The report highlighted that the economy remains vulnerable to the pandemic and warned of the risk of a "double-dip" recession. This is a situation where the economy shrinks again after a brief recovery. The bank stated that the slow vaccination rollout, rising inflation, and the possibility of new virus variants were factors that could lead to a downturn in the economy.

BofA's warning comes as some states in the US are experiencing a surge in COVID-19 cases, with the Delta variant being the predominant strain. The report recommended that the government and policymakers take necessary measures to support the economy, including additional stimulus packages, investing in infrastructure, and boosting the vaccination drive.

The bank's chief economist also stressed the importance of global cooperation to contain the pandemic and prevent further disruptions to the economy. The report stated that the US economy is in a precarious position and requires urgent action to ensure a sustained recovery.

Title: Bank of America warns of Q2 economic contraction in the US

Bank of America (BofA) has warned that the US economy is at risk of shrinking in the second quarter of 2023 due to the COVID-19 pandemic. The bank's economists have revised their forecast, projecting a 1% contraction in the economy during Q2. The report cited slow vaccination rollout, rising inflation, and the possibility of new virus variants as factors that could lead to a downturn in the economy.