BoE Chief Economist Andy Haldane said today that March contraction in the economy was probably enough to cause an overall GDP contraction in Q1. Further, Q2 is likely to bring a “very sharp contraction” too.
He said that there are “real limits” to what public policy could do to offset the economic impacts from coronavirus containment. “Even after those policies are relaxed, there is certainly a chance that people might be reluctant themselves to want to spend too vigorously, or to go out and socialise too much,” he added.
Haldane noted, “there will certainly be some recovery, there will certainly be a bounce. Will it bounce back immediately…? That is an open question.”