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.

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