Top economist on why it’ll take years to recover from Covid-19

As we emerge from our homes, blinking in the light and ready to get back to work, everyone is asking how quickly our economies can recover from their Covid-19 crunches. Some believe that recovery will be rapid as restrictions ease and that we can quickly resume our previous levels of employment and growth. Others are more circumspect, predicting a slower growth path. And some are pessimistic, arguing we may take years or even decades to get back on track. In this episode, which features content from the Bloomberg Odd Lots podcast, we hear from economist Richard Koo, who is famous for his work on the Japanese economy and the role that debt has played in its long slump. Here, he explains why he thinks we could be facing a tough, global balance sheet recession and why recovery could take far longer than we think. – Felicity Duncan

South Africa is slowly exiting its Covid-19 lockdown, and many business owners are eager to reopen and try to regain lost ground. But, while easing lockdowns certainly mean that economic activity will improve, they offer no guarantee of a return to good economic times.

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