Hal­dane: V-shaped re­cov­ery is on the cards

The Daily Telegraph - Business - - Front Page - By

Tim Wallace

THE UK is head­ing for a “V-shaped” re­cov­ery as con­sumers cel­e­brate the end of lock­down with a spend­ing spree, Andy Hal­dane, the Bank of Eng­land’s chief econ­o­mist, has said.

Con­sumer spend­ing data, sur­veys of con­fi­dence and busi­ness ac­tiv­ity all point to a smaller crunch and speed­ier re­bound, Mr Hal­dane said in a speech.

He now be­lieves the coun­try is re­cov­er­ing even more quickly than un­der a pre­vi­ous Bank of Eng­land sce­nario which set out a re­turn to nearnor­mal out­put by the end of 2020 – and was de­rided for be­ing too rosy.

The chief econ­o­mist was speak­ing af­ter the Of­fice for Na­tional Sta­tis­tics re­vealed GDP fell faster than pre­vi­ously thought in the first quar­ter of 2020, even though lock­down was im­posed for only a few days of the pe­riod. GDP fell by 2.2pc as a re­sult – the worst three-month pe­riod in 40 years – and by 6.9pc in March alone.

Mean­while the Bri­tish Cham­bers of Com­merce, which is call­ing on the Gov­ern­ment to help firms and is­sue a “clearer, bolder road map to re­cov­ery”, said the sec­ond quar­ter was the worst on record for busi­nesses as do­mes­tic and ex­port mar­kets ground to a halt.

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