{"id":2948,"date":"2020-05-05T05:00:13","date_gmt":"2020-05-05T10:00:13","guid":{"rendered":"https:\/\/nwiloanguy.com\/blog\/confused-about-the-economic-recovery-heres-why\/"},"modified":"2020-05-05T05:00:13","modified_gmt":"2020-05-05T10:00:13","slug":"confused-about-the-economic-recovery-heres-why","status":"publish","type":"post","link":"https:\/\/nwiloanguy.com\/blog\/confused-about-the-economic-recovery-heres-why\/","title":{"rendered":"Confused About the Economic Recovery? Here\u2019s Why."},"content":{"rendered":"<p><img data-recalc-dims=\"1\" decoding=\"async\"  src=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2020\/05\/04153210\/20200505-KCM-Share-549x300.jpg?w=358&#038;ssl=1\" class=\"webfeedsFeaturedVisual wp-post-image\" alt=\"Confused About the Economic Recovery? Here\u2019s Why. | Simplifying The Market\" style=\"margin-bottom: 5px;clear:both;max-width: 100%\" \/><\/p>\n<p>As we continue to work through the health crisis that plagues this country, more and more conversations are turning to economic recovery. While we look for signs that we\u2019ve reached a plateau in cases of COVID-19, the concern and fear of what will happen as businesses open up again is on all of our minds. This causes confusion about what an economic recovery will look like. With this in mind, it\u2019s important to understand how economists are using three types of sciences to formulate their forecasts and to work toward clearer answers.<span id=\"more-42257\"><\/span><\/p>\n<ol>\n<li><strong> Business Science\u00a0<\/strong>\u2013 <em>How has the economy rebounded from similar slowdowns in the past?<\/em><\/li>\n<li><strong> Health Science\u00a0<\/strong>\u2013 <em>When will COVID-19 be under control? Will there be another flareup of the virus this fall?<\/em><\/li>\n<li><strong> People Science\u00a0<\/strong>\u2013 <em>After businesses are fully operational, how long will it take American consumers to return to normal consumption patterns? (Ex: going to the movies, attending a sporting event, or flying).<\/em><\/li>\n<\/ol>\n<p>Sam Khater, <em>Chief Economist<\/em> at <em>Freddie Mac,<\/em> says:<\/p>\n<blockquote>\n<p><em>\u201cAlthough the uncertainty of the crisis means forecasts of economic activity are more unclear than usual, we expect that most of the economic damage from the virus will be contained to the first half of the year. Going forward, we should see a recovery starting in the second half of 2020.&#8221;<\/em><\/p>\n<\/blockquote>\n<p>This past week, the <em>Bureau of Economic Analysis<\/em> released the advanced estimate for <a href=\"https:\/\/www.bea.gov\/data\/gdp\/gross-domestic-product\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Gross Domestic Product<\/a> (GDP) for the first quarter of 2020. That estimate came in at -4.8%. It was a clear indicator showing how the U.S. economy slowed as businesses shut down and consumers retreated to their homes in fear of the health crisis and of contracting COVID-19.<a href=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2020\/05\/04153212\/20200505-MEM-Eng-1.jpg?ssl=1\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-42259\" src=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2020\/05\/04153212\/20200505-MEM-Eng-1.jpg?resize=650%2C366&#038;ssl=1\" alt=\"Confused About the Economic Recovery? Here\u2019s Why. | Simplifying The Market\" width=\"650\" height=\"366\" \/><\/a>Experts agree that the second quarter of 2020 will be an even greater slowdown, a sign more businesses are feeling the effects of this health crisis. The same experts, however, project businesses will rebound, and a recovery will start to happen in the second half of this year.<\/p>\n<h3><strong>Bottom Line<\/strong><\/h3>\n<p>As time goes on, we\u2019ll have more clarity around what the true economic recovery will look like, and we\u2019ll have more information on the sciences that will affect it. As the nation\u2019s economy comes back to life and businesses embrace new waves of innovation to serve their customers, the American spirit of grit, growth, and prosperity will be alive and well.<\/p>\n<p>Source: New feed<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As we continue to work through the health crisis that plagues this country, more and more conversations are turning to economic recovery. While we look for signs that we\u2019ve reached a plateau in cases of COVID-19, the concern and fear of what will happen as businesses open up again is on all of our minds. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2949,"comment_status":"false","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10157519356927224_105287467588662":"","twitter_15771620_15771620":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[54],"class_list":{"0":"post-2948","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-local-info","8":"tag-100-financing","9":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Confused About the Economic Recovery? 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