Haldane: V-shaped recovery is on the cards
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.