Kudlow predicts 3 percent GDP growth in 2020
The White House’s top economic adviser predicted 3 percent growth for the country’s gross domestic product (GDP) in the next year as economic indicators continue to post strong gains.
During an interview on John Catsimatidis’s radio show Sunday, Larry KudlowLawrence (Larry) Alan KudlowMORE, the director of the National Economic Council under President TrumpDonald John TrumpBiden rips Trump tweets on Iran: ‘Incredibly dangerous and irresponsible’ Swalwell pens op-ed comparing Trump impeachment to XYZ Affair Rockets fired near Green Zone after day of mourning for Soleimani MORE, pointed to strong showings from the market in 2019 to indicate that 2020 would be a similarly strong year.
“Almost nobody expected that to happen. And then it happened, and it got stronger…The market is a very strong signal of tremendous consumer and business confidence,” Kudlow said.
“It tells me that the economy in the coming year is going to be even stronger, probably into a 3 percent growth zone,” he added. “It makes me very optimistic.”
Kudlow also said that a new trade deal with China could add an extra half percent of growth on its own.
The administration has often boasted of economic growth under Trump, pointing to a string of factors including soaring stock prices, strong consumer sentiment and continued low levels of unemployment.
“The increase in real GDP in the third quarter reflected positive contributions from PCE, federal government spending, residential investment, private inventory investment, exports and state and local government spending that were partly offset by a negative contribution from nonresidential fixed investment,” the Commerce Department said last month in an announcement that the economy grew at a 2.1 percent annual pace in the third quarter.
Trump has also boasted about economy on the campaign trail, highlighting it as his Democratic opponents criticize him over a litany of other issues like immigration, health care and foreign policy.
Disclosure: Catsimatidis is an investor in The Hill.