JPMorgan predicted that the US economy will contract by 1 percent in the first quarter of 2021, driven by the increase in COVID-19 cases.

JPMorgan, operating in the US-based international banking and financial services field, became the first major bank to forecast the US economy to contract in the first quarter of 2021 due to the increase in COVID-19 cases.

Expecting 2.8 percent growth in the 4th quarter of 2020, JPMorgan predicted that the US economy will contract by 1 percent in the first quarter, depending on the increase in the number of cases and the measures implemented. JPMorgan predicts that it will return to growth of 4.5 percent in the second quarter of 2021, and revealed its third quarter expectation as 6.5 percent growth.

JPMorgan economists also stated that they expect a COVID-19 aid package of around $1 trillion in the US to be deployed towards the end of the first quarter of 2021.

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