Construction workers on the job at a residential project during the outbreak of the coronavirus disease (COVID-19) in Encinitas, California, U.S., July 30, 2020. REUTERS/Mike Blake
Aug 4 (Reuters) – JPMorgan’s chief economist said on Friday the bank is no longer forecasting a U.S. recession this year and has raised its economic growth estimate as the economy expands at a “healthy pace.”
The firm increased its current-quarter real annualized GDP growth estimate to 2.5% from 0.5%, Michael Feroli wrote in a research note on Friday.
“Given this growth, we doubt the economy will quickly lose enough momentum to slip into a mild contraction as early as next quarter, as we had previously projected,” the economist wrote.
And while recession risks are still elevated for next year, Feroli said he expects modest, sub-par growth.
Earlier this week, strategists at Bank of America said they no…
