Larry Kudlow speaking at the CNBC Capital Exchange breakfast in Washington, D.C. on July 9th, 2019.
Paul Morigi | CNBC
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National Economic Council Director Larry Kudlow, President Donald Trump’s top economic advisor, said Tuesday that GDP growth in the U.S. should hit at least 3% in 2020.
“This is a long cycle and what you’ve got here in the Trump years is essentially a mini upcycle,” Kudlow said. “You’ve gone from 1.5% to 2% growth. We had it going at almost 4% then the Fed tightened.”
“We’re now down to 2.5% to 3%. I’m looking for faster growth: I think we’re going to get 3% this year,” he added. “The trade deals will help, the Fed changed policy — that was very, very important.”
Some investors worried in 2019 that pressure from the U.S.-China tariffs, a decelerating global economy and low inflation levels would cut short a year that started off with a 3.1% GDP gain. Economic growth slumped to 2% in the second quarter and 2.1% in the third quarter, according to government data.
But with two major trade deals inked and new predictions for a global recovery in 2020, sentiment appears to be improving.
Stronger manufacturing and trade data released earlier this month suggested the U.S. economy ended 2019 on a healthy note, with expectations that the economy will grow more than 2% in the fourth quarter.
While that would represent a slowdown from the 2.9% increase in 2018, 2% growth would still suggest the decade-old expansion is prepped to continue into 2020.
Globally, the most recent indication for better growth came from the International Monetary Fund, which earlier this week said it sees growth running at 3.3% in 2020, up from 2.9% in 2019.