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Although governments have invested trillions of dollars in huge first aid kits and launched sharp interest rate cuts and other measures, what is waiting for us may still be the worst economic contraction since the 1930 Great Depression.

How long will this recession last? How will the world economy recover? The answer may be found from 4 English letters: V, U, W, L.

Looking back on history, economists often use these four letters to label economic crises and describe the rising and falling trends of economic activities such as unemployment rate and economic output.
The V-shaped model is generally regarded as the most ideal result. At the beginning of the global outbreak, more economists held this view. After the epidemic in China was controlled, the economy seemed to rebound at a considerable rate, and it also endorsed the V-type model.

However, the premise of the V type is that the epidemic prevention should not only be effective, but also effective soon.

New York S & P Global Chief Economist Paul Gruenwald told the BBC, “If the social alienation restrictions are lifted soon, or if vaccines and special drugs are developed, we may soon be back on track.

In addition, many governments have launched generous first-aid kits in an effort to recover the lost ground as quickly as possible from the second half of the year.
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