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DOR Releases May 2020 Wisconsin Economic Forecast Update
By Wisconsin School Administrators Alliance staff | May 29, 2020
The Wisconsin Department of Revenue (DOR) has just released it’s May 2020 Wisconsin Economic Forecast Update. It’s pretty sobering stuff. The opening bullet points of the Forecast appear below:
Given the massive uncertainty facing US and global economic conditions, this outlook is reflective of the current data available and is subject to significant revisions (emphasis added), as additional information and national forecasts become available.
- The COVID-19 pandemic has severely disrupted the world, US and Wisconsin economies. The International Monetary Fund (IMF) projects that the global economy will contract sharply by 3% in 2020, much worse than during the 2008 Great Recession.
- IHS Markit projects a decline of 7.3% in the US real GDP for 2020. In February, IHS Markit was expecting growth of 2.1% for 2020.
- US employment is forecasted to decline 13.5% and reach its trough the third quarter of 2020.
- April unemployment rates have surpassed the 14% mark in Wisconsin and nationwide.
- Wisconsin employment is expected to decline 14.4% in 2020.
- Wisconsin personal income growth will slow to 0.2% growth in 2020 and 1.6% in 2021.
- In just six weeks, 30 million people nationwide and 440,000 Wisconsinites filed for unemployment benefits. As a comparison, during the Great recession of 2008, the US lost 8.5 million jobs while Wisconsin lost 170,000 jobs during a two-years period.
Wisconsin Economic Forecast Update – May 2020
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