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Global economy is experiencing a ‘sudden stop’ – Goldman Sachs

Chief economist at the Wall Street bank predicts sharp GDP contractions and widespread job losses, but thinks the monetary policy response will help

The global economy is experiencing not just a recession, but rather a “sudden stop”, according to Goldman Sachs.

The Wall Street bank predicts gross domestic product in advanced economies will take a sharp hit in the second quarter, “including a 24% drop in the US that would be 2½ times as large as the previous postwar record”, wrote chief economist Jan Hatzius in a note on March 23.

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