In the first quarter of this year, GDP declined at an annualized rate of -5 percent. While that drop might set off alarm bells and panic for some, the truth is that this is a testament to the resilience of the American economy.
Despite the widespread closures and spiking unemployment, we’re still producing 95 percent as much wealth as we were last year.
While some sectors have been devastated by the crisis, many of them are not massive drivers of growth. Don’t get me wrong, this painful national quarantine is hitting many people hard.
But this crisis has shown that at its core, our economy is resilient. And we can look forward to a strong finish once the shutdowns are ended and all the suppressed economic power is unbound.
All in all, look for America to beat expectations—yet again.