The Beginning of an Economic Recovery

Dated: August 17 2020

Views: 25


The Beginning of an Economic Recovery

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 | Keeping Current MattersOverwhelmingly, 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.

Latest Blog Posts

Why Homeownership Is Still The American Dream

Owning your home provides many benefits, including stability, safety, and personal pride. Let's connect if you're dreaming of homeownership this.

Read More

Homebuyers: Hang in There

Some HighlightsToday’s sellers’ market provides unique challenges—and benefits—for buyers.Current low interest rates won’t last forever, and home prices are forecast to

Read More

Owning a Home Has Distinct Financial Benefits Over Renting

Some HighlightsWhen you rent, you build your landlord’s wealth, your monthly payment depends on ever-rising rents, and you don’t benefit from home price appreciation.On the other hand,

Read More
Fair Housing Icon NY Fair Housing Notice