BBVA Research Department since 1999 (2005- US Team)
•The World Bank, Ministry of Education, Republic Bank
•BA Studies Economics (ITAM)
•MsC & PhD Studies Economics (Warwick)
Today’s labor market report once again showed that the economy is on the mend. However, this environment creates more complexity for Congress, as it supports arguments from both sides of the aisle. That said, Fed officials will continue to take additional steps as it transitions from “stabilization” to “accommodation”.
Banks remain critical for supporting the economy during the crisis. Total bank loan growth will slow and deposit growth revert to normal rates. Banks will be operating with higher levels of deposits relative to loans, credit quality will deteriorate and profitability edge down, but systemic risks remain contained.
July 30, 2020
U.S. | 2Q20 GDP: Worst quarter on record overshadowed by strengthening pandemic headwinds
GDP dropped by 32.9% in the second quarter, marking the steepest decline in over-the-quarter growth since 1937. The rise in the number of COVID-19 cases since mid-June has lowered the likelihood of the “V-shaped” recovery. Economic and health outcomes will be interwoven in the near future.