Why the UK economy is not expected to make a swift recovery from coronavirus pandemic

A leading analyst has warned that the UK economy is not expected to make a swift recovery from the coronavirus pandemic.
Helal Miah.Helal Miah.
Helal Miah.

As markets rose after opening Helal Miah, Investment Research Analyst at The Share Centre, had a cautionary message from investors.

He said: “The markets have opened up by nearly 3% but this is little comfort to those investors who have seen the biggest markets falls overnight in the US since the ‘87 crash and have seen the value of investments wiped out faster than any other bear market.

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"While some investors may begin to ask whether we are close to the bottom, others will see further downside potential and I sit in this camp.

"We’re only just at the start of the crisis in the UK and judging by what’s going on in Europe we have the disastrous economic consequences to deal with in the coming months, the data will be saddening just like we have seen from China.

He added: “Volatility is here to stay for weeks and months and over this period markets will gyrate according to developments such as the extent of the spread of the disease and the economically damaging measures Governments put in place to halt it.

"Markets will react to false dawns too amid data releases suggesting a slowing of the spread or even rumours/fake news of a vaccine. A V-shaped recovery is not on the card."

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