History suggests we can expect a rapid recovery once Covid is beaten

The current pandemic-induced economic crisis isn’t like the financial crisis of 2008. They are very different things, says John Stepek. And the recovery will look very different too. It will be much quicker. Here’s why.

Shuttered shops in London
The shuttered economy will reopen remarkably quickly
(Image credit: © Mike Kemp/In Pictures via Getty Images)

The good news on vaccines appears to be flowing thick and fast. There is solid evidence that they work, whatever the variety and there is increasing evidence that one jab offers a decent amount of protection (both from the AstraZeneca and the Pfizer versions), which means we can get people covered more quickly if everyone goes down the UK route of delaying second doses (I'm not a fan of Tony Blair, but he was absolutely right on this one).

But what does it mean for the economy? Can we get back on our feet after a thump this hard? The good news is that history gives grounds for optimism.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.