The shape of recovery

With some countries nearing the peak of their Coronavirus battle, talk is turning to how the global economic recovery will play out.

With many analysts debating the shape of the recovery Julian Broom, our Chief Investment Officer, explores how it might look:

In attempting to forecast how the world’s economic recovery may develop, economists are certainly divided. In fact all sorts of shapes have been proposed – from a V-shape and U-shape to even a Nike ‘’swoosh’. Early predictions seemed to be focused on a V-shaped recovery, where a significant slump was quickly followed by a quick, positive rebound. This now seems unlikely given that ‘exiting’ the virus will be a slower process than simply lifting sanctions and allowing us all to go back to normal overnight. At this stage it looks realistic that the global recession will be at least as deep as in 2009, or perhaps even the period following World War II. Yet recovery will happen; it always has and this will be no different in the months and years to come.

READ MORE

Contact us

For enquiries or more information: