Larry Kudlow: ‘Falling GDP’ panic is more fake news

Liberal Media and Walls are on the downturn of the wall street, because in the first quarter of 2025, one third of the GDP was hit by a decrease.

Those who suffer from ‘Trump Deragement Syndrome’, now predict a recession of a recession in the second quarter.

However, if you look at the bottom of the GDP and carefully analyze the numbers, the thing you actually arrive is a very strong economy that grows in something like 3%.

It is true.

President Donald Trump It started for the second term, but take a look at Core GDP – this is looking at the heart of GDP, which takes fluky trade import numbers from the Tariff Front and only the private sector consumption and the business of the private sector.

Well, looking at Core GDP, a relevant increase in the first quarterly economy – 3%, not less.

And then, you find better news if you look more deeply in numbers.

Private business investment, while the government’s spending is down.

It is true. In the first quarter, a stable investment in the annual rate is about 10%.

And better, business equipment and machines, which are an incredibly important palm of productivity, increase in work and increase in real salary – incredible 22.5%.

There is no recession there.

All GDP report is 22.5% of the most important number.

What happens here? Why is the regulator so bad wrong? What did they miss?

Good … President Trump’s one, big, beautiful bill The house of both congresses, perhaps around the fourth of July, will pass only a few months.

Mr Trump will repeatedly notify 100% of the announcement that it will be invested in business.

Moreover, it will provide factory investment and provide 100% immediate depreciation.

He killed that he would be retroactive, 2025, 2025, 2025.

Let’s not forget about all this, the corporate tax rate produced in America, which will fall to 21-15% of American goods.

Thus, in fact, what is happening, the future of enterprises is a great good tax cut.

This is a phenomenal story.

It’s a re-shaking story.

It is a story about how to reduce the business tax – service worker tips, along with new individual tax deductions for social security of business hours and elderly, drag any of the tariffs.

Here is another point: Individual consumption deflvers arrived in 0.0% in March.

The main deflator also arrived in 0.0%.

In March, do not forget the index of consumer prices, one percent fell on one.

All these inflation progress were cut in the federal reserve.

True, a proportion should come.

And finally, paying attention to GDP numbers, there is a problem of mathematics.

Yes, imports in the first quarter jumped for $ 333 billion, but the reserves only increased by $ 140 billion.

$ 193 billion is not calculated. There is a space. Where did all these trade imports go?

There was about $ 200 billion gap between imports and resources … evaporated?

Pencil pushers cannot count in the Trade Department.

So I’m just going to add $ 200 billion to a missing and overall GDP.

If they removed it, I will only choose to add it again.

And when doing so, the real GDP growth in 1Q 2025 is 3.2%. Better than personal internal sales.

And it builds something Increased economy with tax discount and regulation It can do noar – perhaps in the second quarter, but in the second half of the year and in 2026.