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HOW QUICKLY WILL WE BOUNCE BACK?
by Sharon Rondeau
(May 20, 2020) — On Wednesday night’s “Hannity,” White House economic adviser and Director of the United States National Economic Council Larry Kudlow told host Sean Hannity that the U.S. economy is expected to see “near 20%” growth in the second half of 2020, citing the Congressional Budget Office (CBO).
The figure comes as the U.S. begins to emerge from the coronavirus (COVID-19) pandemic and a virtual economic shutdown.
Four percent growth is predicted for next year, Kudlow said; “credit that to the Trump incentives of lower taxes and regulations.”
“Businesses are opening left and right,” he remarked, including auto-makers returning to work, increased travel and a subsequent higher demand for gasoline.
After public-health emergencies were declared in March by the federal and state governments, major sectors of the U.S. economy were closed. As of May 8, more than 33 million Americans had filed for unemployment benefits, bringing the unemployment rate to an alarming 14.7%.
In late 2008 as a result of the “Great Recession,” unemployment rose to 10%.
As of March 6, the national unemployment rate stood at a historic low of 3.5%.
On April 24, the CBO forecast a second-quarter GDP contraction of 39.6% but 23.5% growth in the third quarter.
As Kudlow had stated previously, the CBO is forecasting a 10.5% GDP growth rate in the fourth quarter of this year.
Wednesday marked the day that all 50 states reopened their respective economies on at least a partial basis.