World Bank Chief Economist Reinhart: A full global economic recovery may take five years
|In a remote intervention during a conference held in Madrid on Thursday, the World Bank’s chief economist Carmen Reinhart predicted that it may take as much as five years for the global economy to recover from the coronavirus pandemic-led crisis, per Reuters.
Key quotes
“There will probably be a quick rebound as all the restriction measures linked to lockdowns are lifted, but full recovery will take as much as five years,”
“The pandemic-caused recession will last longer in some countries than in others.”
“For the first time in twenty years, global poverty rates will rise following the crisis.”
Market reaction
The cautious remarks have little to no impact on the sentiment, as investors remain unnerved ahead of the Bank of England (BOE) monetary policy decision. Also, as the dust settles over the Fed’s aftermath, the US dollar turns defensive once again across its main competitors.
The European equities are down about 0.50%-1% while the S&P 500 futures drop 1%, pointing to a negative Wall Street open.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.