National Economic Council Director Larry Kudlow predicted a "big snapback" by the U.S. economy in the second half of the year from the coronavirus pandemic.

"I think the second half of this year is going to grow, big snapback," Kudlow told Fox Business Network's Stuart Varney, suggesting growth could be as high as 20 percent.

Kudlow spoke shortly after the government announced that the U.S. economy contracted in the first quarter at its sharpest pace since the Great Recession as stringent measures to slow the spread of the novel coronavirus almost shut down the country, ending the longest expansion in the nation's history.

The drop in gross domestic product (GDP) reported by the Commerce Department on Wednesday reflected a plunge in economic activity in the last two weeks of March, which saw millions of Americans seeking unemployment benefits.

"I think the economy is going to suffer through some really bad numbers," Kudlow said.

However, with the U.S. economy poised for a sharp rebound, it is time for policy to move from a "cash" rescue phase to focus on more long-term measures that can underpin growth, Kudlow said.

"I think the liquidity and cash phase is coming to an end," Kudlow said when asked if a fourth coronavirus relief bill was needed.

"Now I'd like to see a more incentive-minded approach that will get this economy roaring," he said, citing a White House wish list that includes a payroll tax holiday, small business regulatory relief, infrastructure spending and liability protection for businesses that are reopening. 

"We'll come out of the shoot in the second half and go right into 2021 with a very positive rebound," Kudlow said.

Meanwhile, the rapid decline in GDP reinforced analysts' predictions that the economy was already in a deep recession and left economists bracing for a record slump in output in the second quarter.

"If the economy fell this hard in the first quarter, with less than a month of pandemic lockdown for most states, don't ask how far it will crater in the second quarter because it is going to be a complete disaster," said Chris Rupkey, chief economist at MUFG in New York.

Gross domestic product declined at a 4.8% annualized rate last quarter, weighed down by a collapse in spending on healthcare as dentists' offices closed and hospitals delayed elective surgeries and non-emergency visits to focus on patients suffering from COVID-19, the potentially lethal respiratory illness caused by the virus.

That was the steepest pace of contraction in GDP since the fourth quarter of 2008. Households also drastically cut back on purchases of motor vehicles, furniture, clothing and footwear. Receipts for transportation, hotel accommodation and restaurant services also plunged.