These developments may be an early indication that conditions are falling into place for real GDP to decline at a slower rate in the second quarter and to stabilize later this year. I want to emphasize that the highfrequency data are very noisy, and considerable uncertainty attends the near-term path of the economy.
It is imperative that we try to distill even at this stage some fundamental lessons from this episode with a view to strengthen the underpinnings of the economy, reduce its vulnerabilities and rigidities, and unlock its productive potentials.