We’ve all heard the saying; “This too shall pass.”
As our lives, our businesses, and the world we live in change day by day, we’re all left wondering how long this will last. How long will we feel the effects of the coronavirus? How deep will the impact go? The human toll may forever change families, but the economic impact will rebound with a cycle of downturn followed by economic expansion like we’ve seen play out in the U.S. economy many times over.
Here’s a look at what leading experts and current research indicate about the economic impact we’ll likely see as a result of the coronavirus. It starts with a forecast of U.S. Gross Domestic Product (GDP).
According to Investopedia:
“Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health.”
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When looking at GDP (the measure of our country’s economic health), a survey of three leading financial institutions shows a projected sharp decline followed by a steep rebound in the second half of this year:
A recent study from John Burns Consulting also notes that past pandemics have also created V-Shaped Economic Recoveries like the ones noted above, and they had minimal impact on real estate prices. This certainly gives hope and optimism for what is to come as the crisis passes.
With this historical analysis in mind, many Boston real estate business owners are also optimistic for Beacon Hill, Dowtown/Midtown, Seaport condos to name a few Boston real estate neighborhoods to come roaring comeback.
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PricewaterhouseCoopers survey shows businessbconfidence in all industries, noting 66% of surveyed business owners feel 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 1 to 3 months after:From expert financial institutions to business leaders across the country, we can clearly see that the anticipation of a quick return to normal once the current crisis subsides is not too far away. In essence, this won’t last forever, and we will get back to growth-mode. We’ve got this.
Boston Real Estae & The Bottom Line
Lives and businesses are being impacted by the coronavirus, but experts do see a light at the end of the tunnel, as the economy slows down due to this health crisis. Lets all take guidance and advice from one of our past presidents; Abraham Lincoln, who was a fan of this quote because it is true and appropriate in all times and situations, “This too shall pass.”
We’re providing daily updates on the coronavirus and its impact on the Boston Real estate market. For today’s Downtown Boston real estate news click here
