HOUSTON, May 21, 2020 /PRNewswire/ -- The BBVA Research team has published its Economic Outlook for second quarter 2020, offering a look at how the U.S. economy might recover in a post-COVID world.
The report provides a high level view of the country's efforts to find a balance between bringing the economy back to normal while keeping its residents safe. The economists, who authored the expansive report together, indicated that it expects to see ongoing social distancing, workforce-protection controls, and case-based interventions (testing, contact tracing, self-isolation, etc.), which may become more or less strict depending on the rate of infection and the operating capacity of the healthcare system.
The quarterly outlook delves into the continuing impact of the pandemic on the U.S. labor market, as more than 30 million people have filed for unemployment. In addition, the report contains a comprehensive view of the role of the Fed and monetary policy on the U.S. economy along with a perspective on policymakers' efforts to mitigate the healthcare, social and economic costs of the novel coronavirus. These include a series of four different relief measures beginning in early March.
The report further offers insights into the current housing market, for both existing homes and new construction, noting that the initial indication of the severity and the speed of the downturn came from the homebuilders housing market index reading in April, showing a decline of 42 points from March's level. This was the steepest single-month decline in the history of the series, implying that single family construction activity will decline by 30 percent.
Led by Nathaniel Karp, BBVA Compass' research team analyzes the U.S. economy and Federal Reserve monetary policy. For its analyses, the economists create models and forecasts for growth, inflation, monetary policy and industries. The Economic Research team also follows a variety of issues that affect the Sunbelt states where BBVA Compass operates. Follow their work on Twitter @BBVAResearch and @BBVACompassNews.
Read the full report here.
See the complete library of BBVA Research publications here.
For more financial information about BBVA in the U.S., visit bbvausa.investorroom.com.
BBVA (NYSE: BBVA) is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market, is the largest financial institution in Mexico, it has leading franchises in South America and the Sunbelt Region of the United States. It is also the leading shareholder in Turkey's Garanti BBVA. Its purpose is to bring the age of opportunities to everyone, based on our customers' real needs: provide the best solutions, helping them make the best financial decisions, through an easy and convenient experience. The institution rests in solid values: Customer comes first, we think big and we are one team. Its responsible banking model aspires to achieve a more inclusive and sustainable society.
In the U.S., BBVA is a Sunbelt-based financial institution that operates 641 branches, including 330 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 44 in Florida, 37 in Colorado and 17 in New Mexico. The bank ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (6th). In the U.S., BBVA has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 8th nationally in terms of dollar volume of SBA loans originated in fiscal year 2018.