The human toll of the coronavirus pandemic may forever change families, yet the economic impact will rebound with a cycle of downturn followed by economic expansion, as we’ve seen play out in the U.S. economy many times before.
Today I’d like to share what leading experts and current research indicate about the economic impact we’ll likely see as a result of COVID-19. Let’s start with a forecast of the U.S. Gross Domestic Product (GDP).
When looking at GDP (the measure of our country’s economic health), a survey of three leading financial institutions projects a sharp decline followed by a steep rebound in the second half of this year.
A recent study from John Burns Consulting notes that past pandemics have created V-shaped economic recoveries, and had minimal impact on housing prices. This certainly gives us hope and optimism regarding what is to come as this crisis passes.
“This won’t last forever, and we will get back to growth mode—we’ve got this.”
With this historical analysis in mind, many business owners are also optimistically anticipating a bright economic return. A recent PricewaterhouseCoopers survey captures this confidence, noting 66% of surveyed business owners believe their companies will return to normal business rhythms within a month of the pandemic passing, and 90% feel they should be back to normal operation one to three months afterward.
From expert financial institutions to business leaders across the country, we can clearly see that a quick return to normal once the current crisis subsides is not too far away. In essence, this pandemic won’t last forever, and we will get back to growth mode—we’ve got this.
Lives and businesses are being impacted by COVID-19, but experts do see a light at the end of the tunnel. As the economy slows down due to the health crisis, we can take the guidance and advice from experts that this too will pass.
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