Did you know that Reuters surveyed over 50 economy experts on what they think about economic recovery post the corona pandemic? How the revival would look like? Will it be a V, U, or for that matter a W-shaped recovery? The poll participants think that there could be a shrink of six percent. In 2020, while others believe 0.7 percent growth after the pandemic.
We all want recovery from the current situation so that businesses grow and more employment opportunities created. Read on to learn more about some of the top predictions about how the global economy would recover after the corona crisis.
Hani Zeinitalks about V-shaped recovery
It is the best outcome that we can expect. We could see a development thrust followed by an evenly steep recovery after the corona pandemic. As far as the April to June GDP contraction is concerned. It may be on a level not witnessed for many years, however. The economic and financial stimulus of more than $10 trillion might help in an evenly fast bounce back or recovery.
According to Ross Walker, who is the co-head of global economics, NatWest Markets, he considers the level of economic. Decline anticipated in the current quarter, signifying a considerable recovery in Q3 as well as Q4, when businesses reopen after the lockdown.
W-shaped recovery
When the lockdown restrictions are eased gradually, you could see an initial boost in economic activities. Then, the impact of business bankruptcy and job loss may start to filter. If the corona pandemic does not erupt, we could expect a gradual growth, according to Hani Zeini. Let us hope that no more coronavirus incidents explode so that the global economy recovers fast.
Hani Zeini on U-shaped recovery
The recovery could take over a few quarters, as economies did suffer more this time compared to the 2008-2009 recession. The rebound will take some time but will happen, and is the most possible outcome. U-shaped recovery is the foundation case; the impact of the lockdown will last for some time after it is withdrawn.
Swoosh-shaped recovery
This scenario is neither U nor V. We may expect to look at a tick-mark type shape, according to economists.
Giles Moec, who is AXA Investment Managers group chief economist, predicts the swoosh shape, similar to the Nike logo. To save and significant restrains on investment, the most probable situation for the global economy’s recovery after the lockdown would be subtle and gradual. It is fine if the recovery is slow but positive instead of a continuous recessive period. Let us hope for the best.
Final thoughts
After the corona lockdown is lifted, the expectation is that the world economy. Will rebound slowly on a positive note, if not too fast.