The White House economic advisor estimated today, Sunday, that economic growth in the United States will reach about 20 percent in the third and fourth quarters, despite a slowdown in recovery due to the Covid-19 epidemic.
"I do not deny that some of these states, the hotspots (of the epidemic) have eased the recovery. But the picture generally looks very positive," Larry Kudlow told CNN, noting that recovery after a deep recession is taking place.
He added: "I still expect that the growth rate will reach 20 percent in the third and fourth quarters."
On Thursday, the US administration will publish its preliminary estimates of gross domestic product in the second quarter of the year, which was marked by the closure of the economy at the height of the health crisis in an attempt to contain the Corona virus.
The International Monetary Fund estimated that gross domestic product contracted during this period (April-June) by 37 percent year on year.
Kudlow acknowledged that the pace of the recovery may be controversial, but he pointed out that economic indicators show a recovery, noting in particular the big jump in retail sales in May and June, in addition to the strong recovery of the auto industry.
The Fed has shown caution so far on the pace of recovery for the second half of the year. He predicted a 6.5 percent contraction for 2020.
