The UK economy is on course for a V-shaped recovery from the coronavirus crisis though the risk of a prolonged period of unemployment remains, according to the Bank of England’s chief economist.
Britain is widely expected to have entered a steep recession as a result of the lockdown – but it appears to be bouncing back more quickly than previously expected, Andy Haldane said in a webinar speech.
He said the economy was benefiting from a rebound in consumer confidence since restrictions began to ease.
Referring to the question of whether the downturn would be U-shaped – indicating a prolonged downturn – or V-shaped with a sharp bounce-back, Mr Haldane said: “It is early days, but my reading of the evidence is so far, so V.”
The remarks came as official figures showed the economy had performed even worse than initially estimated