FX.co ★ Vaccine to hardly contribute to faster global recovery

Some analysts believed that the coronavirus spread would be halted once and forever. However, the world has faced the second wave. That is why the global economy is likely to need much more time to recover than anticipated earlier.

UBS Chairman Axel Weber is sure that people should not be deluded by optimistic forecasts about quick economic recovery. He supposes that even in the best-case scenario, economic indicators will need at least one year to reach their pre-crisis levels.

“Going forward, I’m not pessimistic. I mean, eventually we’ll get through this. But we should not be under the illusion that it will happen fast, it will take some time,” Axel Weber noted. “It’ll take another year or two to be anywhere near getting unemployment and pre-crisis growth back,” he also added. It is obvious that news about successful trials of two vaccines against the coronavirus raises hopes for the healthy economy. However, it will surely take a lot of time.

Reacting to the news about the vaccines’ effectiveness Weber said that while “it was definitely good news, it would take time to roll out vaccination programs at a domestic and global level”. However, Weber has cautioned that people “have to take this with a grain of salt.”