While it might be too early to get a clear view of things, but we would like to see the half glass-filled side of the picture. Yes, there are indications that the UK economy is already on the path of an economic recovery. Andy Haldane, Chief Economist, Bank of England remarked that the country’s economy is recovering faster from the impact of the coronavirus led crisis than earlier expected.
Economists typically describe three types of recovery styles – L, U and V shaped. While the first one is the slowest type, accompanied with high unemployment and almost stagnant growth rates, and may mean recessionary times for many years. On the other hand, a U-shaped one is much faster than the first one, and makes the economy bounce back to its earlier levels in a year or two at the most. The last one or the V-shaped recovery would mostly showcase a fast slowdown in the economy over a brief period, followed by a clear and strong recovery, typically within a year.
The UK economy was badly hit by the unprecedented impact of the coronavirus pandemic. The country went into a lockdown on March 23 to contain the spread of the flu infections. While this period saw a falling demand for goods and services, it also saw a consequent rise in household savings.
#UKEconomy #Covid19 #Recovery #Kalkine
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