BBVA Research publishes its third quarter U.S. Economic Outlook

Rhea-AI Summary

BBVA Research has released its Economic Outlook for Q3 2020, highlighting the economic turmoil caused by COVID-19. The pandemic has revealed significant economic vulnerabilities and resulted in one of the worst recessions since World War II, with a forecasted growth decline of -5.1% in 2020 and a modest recovery of 3.5% in 2021. The report emphasizes that social and fiscal policy effectiveness will be crucial for recovery. Key topics include labor market forecasts, personal savings changes, and consumer loan balances.

Positive

• Maintains baseline growth forecast for 2021 at 3.5%.
• Insightful analysis provided by the BBVA Research team.

Negative

• 2020 growth forecast is a significant decline at -5.1%.
• COVID-19 exacerbated poverty and income inequality.

HOUSTON, Aug. 19, 2020 /PRNewswire/ -- The BBVA Research team has published its Economic Outlook for third quarter 2020, as the U.S. faces one of its most challenging environments in modern history.

The report, published by the entire BBVA Research team headed by BBVA Chief Economist Nathaniel Karp, shines a light on the economic and social impact of COVID-19.  According to its authors, the pandemic has exposed major fault lines previously hidden by the longest economic expansion on record and has forced draconian measures that caused massive job losses and the worst recession since World War II, exacerbating poverty and income inequality.

While maintaining its baseline for growth in 2020 at -5.1 percent and 3.5 percent in 2021, the quarterly outlook highlights the importance of the timing, scope and effectiveness of social and fiscal policies in determining the possible shape of the economic recovery. The report notes that containment will be the key determinant.

The BBVA Research publication further delves into labor market forecasts, the change in the personal savings rate and consumer loan balances, and possible next steps for the Fed.

BBVA USA's 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 USA operates. Follow their work on Twitter @BBVAResearch and @BBVANews_USA.

Read the full report here.

See the complete library of BBVA Research publications here.

For more BBVA news visit, www.bbva.com and the U.S. Newsroom.

Additional news updates can be found via Twitter and Instagram.

For more financial information about BBVA in the U.S., visit bbvausa.investorroom.com.

About BBVA  

BBVA Group
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.

BBVA USA
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.

View original content to download multimedia:http://www.prnewswire.com/news-releases/bbva-research-publishes-its-third-quarter-us-economic-outlook-301115003.html

SOURCE BBVA USA

FAQ

What is BBVA's growth forecast for 2020?

BBVA's growth forecast for 2020 is a decline of -5.1%.

What is the expected growth for the U.S. economy in 2021 according to BBVA?

The expected growth for the U.S. economy in 2021 is 3.5%.

What are the main economic challenges discussed in BBVA's report?

The report discusses significant job losses, recession, poverty, and income inequality due to COVID-19.

Who leads the BBVA Research team?

The BBVA Research team is headed by Chief Economist Nathaniel Karp.

Where can I read BBVA's Economic Outlook report?

You can read BBVA's Economic Outlook report on their official website.