Morgan Stanley confident of bounce back

Morgan Stanley expects global growth to bounce back from the impact of the COVID-19 pandemic, saying economic output will return to pre-lockdown levels by the end of the year and the recession will be short but sharp.

Chetan Ahya, the bank's chief economist, said: “Recent upside surprises in the incoming growth data and policy action have increased our confidence that this will be a deep V-shaped recession.” Morgan Stanley said its projections assumed that a "second wave" of coronavirus infections would appear by the autumn, "but that it will be manageable and will result in selective lockdowns".

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