US CBO sees economy contracting 12pc in Q2, unemployment 14pc

• US GDP in the April-June period is forecast to decline by 12 percent while the jobless rate reaches 14 percent as a result of the widespread lockdowns to contain the coronavirus pandemic.
• CBO warned that the "challenges in the economy and the labor market are expected to persist for some time."

US GDP in the April-June period is forecast to decline by 12 percent while the jobless rate reaches 14 percent as a result of the widespread lockdowns to contain the coronavirus pandemic, the independent CBO said.

The deficit estimate is more than triple the CBO's prior forecast last month.

CBO warned that the "challenges in the economy and the labor market are expected to persist for some time."