Kudlow, US NEC Chairman, Forecasts "V-Shaped Recovery"

[Image source=Yonhap News]

[Asia Economy Reporter Lim Cheol-young] "I still believe the economy will recover in a V-shaped manner."

Larry Kudlow, Chairman of the U.S. White House National Economic Council (NEC), stated this on the 26th (local time), according to the Wall Street Journal (WSJ). He forecasted a sharp economic rebound despite the ongoing spread of the novel coronavirus disease (COVID-19).

Chairman Kudlow cited the rapid increase in home sales from 9.7% in May to 20.7% in June as the basis for his V-shaped rebound outlook. He also pointed out that manufacturing production in July turned positive for the first time since February. He predicted, "There is a high possibility that employment will be significantly created and the unemployment rate will sharply decline." However, WSJ noted that the recovery of employment rates remains uncertain as some state governments have withdrawn plans to resume economic activities.

Earlier, Steven Mnuchin, U.S. Secretary of the Treasury, also forecasted a sharp rebound in economic growth in the third quarter. He said, "I have consistently said that the economic performance in the second quarter will be very poor due to health reasons," and added, "In the third quarter, the economic growth rate will rebound significantly." Secretary Mnuchin cited economic forecasts projecting the third-quarter economic growth rate to reach an annualized 17%.

Meanwhile, the number of deaths in the U.S. on the 25th was 1,037 (COVID-19 Tracking Project), exceeding 1,000 for five consecutive days since the 20th.

This content was produced with the assistance of AI translation services.