The Beginning of an Economic Recovery

Dated: August 17 2020

Views: 20

The Beginning of an Economic Recovery | MyKCM

The news these days seems to have a mix of highs and lows. We may hear that an economic recovery is starting, but we’ve also seen some of the worst economic data in the history of our country. The challenge today is to understand exactly what’s going on and what it means relative to the road ahead. We’ve talked before about what experts expect in the second half of this year, and today that progress largely hinges upon the continued course of the virus.

A recent Wall Street Journal survey of economists noted, “A strong economic recovery depends on effective and sustained containment of Covid-19.” Given the uncertainty around the virus, we can also see what economists are forecasting for GDP in the third quarter of this year (see graph below):The Beginning of an Economic Recovery | MyKCMOverwhelmingly, economists are projecting GDP growth in the third quarter of 2020, with 5 of the 9 experts indicating over 20% growth.

Lisa Shalett, Chief Investment Officer for Morgan Stanley puts it this way:

“Indeed, the ‘worst ever’ GDP reading could be followed by the ‘best ever’ growth in the third quarter.”

As we look forward, we can expect consumer spending to improve as well. According to Opportunity Insights, as of August 1, consumer spending was down just 7.8% as compared to January 1 of this year.

Bottom Line

An economic recovery is beginning to happen throughout the country. While there are still questions that need to be answered about the road ahead, we can expect to see improvement this quarter.

Blog author image

Linda and Richard Askue

We Want to Become your Real Estate Agents for Life! Our ‘Mission & Vision’ is to help people build wealth through Real Estate. People’s opportunities & possibilities are greater as a result of....

Latest Blog Posts

With Mortgage Rates Climbing, Now’s the Time To Act

Last week, the average 30-year fixed mortgage rate from Freddie Mac jumped from 3.22% to 3.45%. That’s the highest point it’s been in almost two years.

Read More

Sellers: Don’t Wait Until Spring To Make Your Move

As you plan out your goals for the year, moving up to your dream home may top the list. But, how do you know when to make your move? You want to time it just right so you can get the most out

Read More

Achieving the Dream of Homeownership

Homeownership has long been considered the American Dream, and it’s one every American should feel confident and powerful pursuing. But owning a home is also a deeply personal dream. Our

Read More

When Is the Right Time To Sell

Some HighlightsIf you’re trying to decide when to list your house, the time is now. There are plenty of buyers eagerly waiting for your home to hit the market.The latest data

Read More