Posted To: MND NewsWire

Fannie Mae’s Economic and Strategic Research (ESR) group says it expects the U.S. gross domestic product (GDP) to decline by 35 percent (annualized) in the current quarter. The loss of 4.8 percent in the first quarter, the largest decrease in six years exceeded Fannie Mae’s estimate of -3.3 percent because of a larger than anticipated slowdown in personal consumption expenditures (PCE), 40 percent of which, ironically, came from a decline in spending on healthcare because of delays or cancellations in elective surgeries because of the pandemic. The plummeting growth expected in the second quarter will improve in the second half of the year, with healthcare at that point providing outsized support. As restrictions and social distancing measures are relaxed, the economists believe that an elevated…(read more)

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Source: Mortgage News Daily