What kind of recovery will the world see post COVID-19?

Take our poll now

04 Jun 2020

In a conversation with UBS Asset Management, Noble Laureate Sir Christopher Pissarides gave his views on how the global economy will recover from COVID-19.

What do you think? Will we see a U, V or W recovery?

The economic recovery post COVID-19 will be

Poll Form

What Sir Christopher Pissarides thinks

If we start seeing the opening up of economies it could be a W-shaped recovery, where we come out of the lockdown and the economy starts growing and then the virus comes back, and we see a double dip.

I don’t see a U-shaped recovery, staying at the bottom of the curve for a long time and then going up, if you look at the current infection rate levels. Lockdowns in Europe especially were successful. Governments will want to relax lockdown restrictions soon to support the economy but in my opinion this is too soon.

I therefore believe it will be a V or W shape recovery curve, depending on the trajectory of the virus. It is unlikely that after opening-up the economy will crawl along the bottom for long.

What's the next normal post COVID-19?

Sir Christopher Pissarides

Nobel Laureate

And labor market economist was awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel in 2010 for his work on the economics of unemployment, including job flows and the effects of being out of work.

Prior to that, in 2005, he became the first European economist to win the IZA Prize in Labor Economics. 

When I realized there were people who wanted jobs but couldn’t get them even though companies were hiring, it became obvious there was a great lack of understanding of the problem and what could be done about it.

Subscribe now

Perspectives matter. Tune in to our insights.

More insights

Important legal information

To proceed, please confirm that you are a professional / qualified / institutional client and investor.

Views and opinions expressed are presented for informational purposes only and are a reflection of UBS Asset Management’s best judgment at the time a report or other content was compiled. UBS specifically prohibits the redistribution or reproduction of this material in whole or in part without the prior written permission of UBS and UBS accepts no liability whatsoever for the actions of third parties in this respect. The information and opinions contained in the content of this webpage have been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith but no responsibility is accepted for any errors or omissions. All such information and opinions are subject to change without notice but any obligation to update or alter forward-looking statement as a result of new information, future events, or otherwise is disclaimed. Source for all data/charts, if not stated otherwise: UBS Asset Management.
Any market or investment views expressed are not intended to be investment research. Materials have not been prepared to address requirements designed to promote the independence of investment research and are not subject to any prohibition on dealing ahead of the dissemination of investment research. The information contained in this webpage does not constitute a distribution, nor should it be considered a recommendation to purchase or sell any particular security or fund. The materials and content provided will not constitute investment advice and should not be relied upon as the basis for investment decisions. As individual situations may differ, clients should seek independent professional tax, legal, accounting or other specialist advisors as to the legal and tax implication of investing. Plan fiduciaries should determine whether an investment program is prudent in light of a plan's own circumstances and overall portfolio. A number of the comments in the content of this webpage are considered forward-looking statements. Actual future results, however, may vary materially. Past performance is no guarantee of future results. Potential for profit is accompanied by possibility of loss. 
© UBS 2020 The key symbol and UBS are among the registered and unregistered trademarks of UBS.

Reset