European Investment Fund warns of "mother of all recessions"

A quick economic recovery after a significant fall caused by a pandemic is unlikely, says Frederick Zhanbon, CEO of BNP Paribas Asset Management.

According to him the world economy would be “the mother of all recessions” due to the coronavirus pandemic.
Zhanbon believes that a quick economic recovery after “a very, very significant drop in activity in almost all countries of the world,” which caused the pandemic, is unlikely.

The top manager doubted the possibility of the so-called V-shaped recovery after the crisis, in which there is a sharp drop, and then the same sharp increase. In most countries, Janbon believes, it will follow a slower, U-shaped scenario.

According to Zhanbon, the “huge rally” in the stock markets after the collapse in March does not reflect the real situation in the economy. It happens too quickly, not taking into account the risk of the second wave of coronavirus worldwide.