Economy set for K-shaped recovery: CFA

A significant percentage of CFA Institute members believe that a 'K-shaped' economic recovery is forming, where different parts of the economy are recovering from the Covid-19 pandemic at different rates, times or magnitudes, as per a survey. According to the survey of 6,040 global respondents by CFA Institute, the global association of investment professionals, 44 per cent predicted a K-shape recovery, indicating a globally divergent recovery.

The K-shaped recovery marks a distinct shift away from the "hockey-stick shaped" recovery predicted last year, when close to 75 per cent of respondents thought that any upturn would be slow or stagnant in the short term, before picking up in the medium term, the survey said. "The post-pandemic world is quite visibly a volatile one, and everyone is eyeing the nature of our economic recovery from the same. I believe the most predictable bounce-back would be of a K-shaped nature, wherein different parts of the economy would recover at different rates. "It is, of course, a certainty that Covid-19 is bound to affect all walks of life and will influence Government policies, Tax regulations, and the entire Indian financial landscape," said Vidhu Shekhar, CFA, CIPM, Country Head, India, CFA Institute.