Amid the negative economic toll inflicted by an ongoing public health crisis, at least one expert thinks good news is on the horizon.
According to a report by the Epoch Times, White House economic adviser Larry Kudlow is predicting that the U.S. economy is set to grow by more than 20% in the second half of 2020.
“You can score that”
His optimistic prediction came during a recent appearance on Fox Business Network’s Varney & Co.
“You can score that,” Kudlow said of his forecast. “We’re going to have a big bang year next year when the president puts in his free-market reward success policy.”
With such a devastating impact on the previously thriving economy, virtually all economists agree that a recovery is on the way. The disagreement stems from how fast and robust that recovery will be.
Some predict a gradual rate of growth while Varney and others — including President Donald Trump — believe in a much faster “V-shaped” recovery.
“From the pandemic, which was a bone-crusher and a heartbreaker, you’ve got a whole series of indicators that are booming,” Kudlow added.
“Well past the recovery phase”
Of course, those who believe economic doldrums are here to stay point to a resurgence in coronavirus cases throughout the summer and a recent uptick in the number of Americans filing for unemployment benefits.
The U.S. Department of Labor reported this week that 1.1 million people filed for unemployment over the previous week. This is up from the 971,000 recorded in the prior week, which itself was the lowest figure since March. In total, 57.4 million Americans — or more than a third of the country’s labor force — have filed for unemployment since the outbreak of COVID-19, according to reports.
Nevertheless, Kudlow is betting on a swift recovery based on encouraging indicators including the addition of 9 million jobs over the past three months and positive trends in the housing, automotive, and retail industries.
“The housing market is well past the recovery phase and is now booming with higher home sales compared to the pre-pandemic days,” he said.
As far back as May, Trump cited market growth in sharing his belief that “you’re going to have a ‘V'” in the economic recovery trend. With Kudlow backing up that prediction, millions of Americans are counting on the administration to deliver.