Why we are now set for a U-shaped global economic recovery – The National

Why we are now set for a U-shaped global economic recovery – The National

May's US jobs figures lifted markets, with many expecting a V-shaped turnaround, but gloomier data has changed the outlook. Expectations of a V-shaped global economic recovery flattened last week, giving way to more realistic U-shaped or even saucer-shaped scenarios of post-coronavirus growth.. It suggested the US economy, and by extension the world, was on course for a V-shaped economic recovery.. Since then the barrage of gloomier economic prognoses has been relentless, returning the emphasis to more protracted recovery scenarios and bringing stock market rallies to an abrupt halt.. Markets should have already been cautious about reading too much into the May US employment figures.. Even before the Fed said anything, the World Bank had chimed in with its updated economic outlook forecasting the world to shrink by 5.2 per cent this year.. In the first, global gross domestic product would drop 6 per cent this year if a second virus wave is avoided, while in the second scenario, global GDP fell 7.6 per cent in a second wave followed by 2.8 per cent growth in 2021, with output not returning to pre-recession levels for at least two years.. In his comments following the meeting, the Fed chairman Jerome Powell was