High-ranking economists at both banks see promising indicators that may suggest the worst is over.
Bloomberg reports that experts are signaling a recovery in the economy.
According to Morgan Stanley’s chief economist, Chetan Ahya, consumer expectations have improved. People have moved and spending is slowing down.
According to Ahya, China’s economy hit bottom in February. The US reached that bottom late in April. Ian Hattzius, chief economist at Goldman Sachs, also sees good signs.
“Economic activity may have bottomed out.”
The International Monetary Fund also claims that we should expect a V-shaped recovery.
Not everyone is of the opinion. HSBC Holdings economist James Pomroy warned that a turnaround could be dangerous. According to an analysis of statistics from China, consumer spending is recovering particularly slowly. People are still worried about COVID-19.
Some analysts have suggested that opening up the economy could be an opportunity to ‘sell the news’ as consumer spending is slowly recovering.
Even if the bottom is reached, the real question is when there will be a significant recovery. Even before COVID-19, global investment was relatively anemic.
In the US, the unemployed are currently more than 30 million nem ployment-benefits-coronavirus / index.html “target =” _ blank “. With the stock market rally, some commentators have seen a discord between the financial markets and the real economy.
Shares are rising as a result of the actions of the Federal Reserve, not the activities of companies.