What Shape will our recovery be?

Rarely has the modern world seen such a global impact caused by a single event. The impact of Covid 19 has shown how truly connected our world is the good and the bad. In short, we all live on the same planet and therefore share a journey. Economic historians are reaching back looking for parallels but with respect we are travelling in uncharted waters. The closest thing I believe we can look at is the response to war. The great debate is will our recovery be V or U-shaped. Western governments are getting ready to pump prime the global economy via infrastructure. This will take some time but there are many construction ready projects in the top drawer. Despite the encouraging comments of the Australian Prime Minister, Scott Morrison, we will not wake up from hibernation. My suspicion is we are looking a few tough months as things get put into place followed by a rapid mobilisation. The nature of work for the changed for many but not all. Our economy will need things and trade will resume. I suspect our world will be more prosperous and ever as we will have shed many costs, regulations and controls. I for one see the balance of the decade is one of prosperity.

Paul Raftery / www.paulraftery.com.au