CEA Subramanian says V-shaped recovery possible if Covid-19 contained

With a coronavirus vaccine still months or may be even years away, economists outside the government don't see a sustained recovery anytime soon.

Chief Economic Advisor Krishnamurthy Subramanian, said a V-shaped recovery for the economy is possible this year, provided a vaccine is found to contain the Covid-19 pandemic.

“The recovery will happen after that uncertainty from the health side is taken care of,” Subramanian said in an interview with Bloomberg. “If it so happens that in the latter half of the year we have the vaccine, then one can anticipate V-shape recovery starting in the second half.”

In the absence of a vaccine, the economic recovery will have to wait until next year, although that too is likely to be V-shaped given the experience