Cathie Wood predicts that the US GDP rise rate will reach 7.3%, and she says the largest productivity rise in history is coming soon

PANews reported on March 12 that Cathie Wood, CEO of ARK Invest, stated that the U.S. economy is approaching the end of a ‘Rolling Recession’ and is about to experience an unprecedented rise in productivity driven by artificial intelligence (AI) and emerging technologies. She predicts that the U.S. GDP rise rate will reach 7.3% and believes that the largest productivity rise in history is imminent, despite weak short-term economic data. She believes that technologies such as AI, genetic technology, automation, and Crypto Assets will drive global economic transformation and form a positive cycle with the tax cuts and deregulation policies of the Trump administration. In addition, she pointed out that since SEC Chairman Gary Gensler stepped down, the U.S. government’s attitude towards the encryption industry is changing, and Washington is embracing the ‘digital asset revolution.’ Wood believes that current market funds are mainly concentrated in the ‘MAG7’ (seven major tech giants), but will shift to a wider range of innovative stocks in the future. She specifically mentioned that ChatGPT still dominates, but Elon Musk’s Grok is rising faster, and Open Source AI models (such as DeepSeek, Meta’s Llama, and possible future versions of GrokOpen Source) will become an important trend. However, the market has reacted negatively to her views, with many investors questioning her investment strategy and believing that she is overly optimistic about the economic policies of the Trump administration, especially the tariff policy and tax cuts that could lead to an expansion of the fiscal deficit. Meanwhile, the ARK Innovation ETF has lagged behind the S&P 500 since a sharp decline in 2022. Nevertheless, Wood remains firm in her belief that the U.S. economy will enter one of the strongest Bull Markets in history and states that if new technologies such as AI drive deflation, the U.S. will experience an unprecedented economic rise.