An interesting article in The Economist that suggests that the post-crisis economy that is currently emerging will be fundamentally different from the one we knew earlier this year.
The outlook remains uncertain, the only certainty is that this time it is different! Early indications are that we will not see a full rebound in growth and thus the “90% economy” has been created which will be, by definition “smaller than that which came before.”
Current data suggests that discretionary consumer spending will be lower, many companies will not reopen, those that do are likely to be weaker and a collapse in investment will mean reduced innovation.
“The longer the world has to endure a 90% economy, the less likely it is to snap back after the pandemic.”