Interview with the Bank of England's Governor Andrew Bailey on the impact of the Covid-19 pandemic

The video discusses a significant 14% fall in GDP, highlighting its uniqueness in modern economic history. The economic shutdown in March led to a dramatic decline in activity. However, a steep recovery is anticipated, contingent on public health measures and government policies like the job scheme. The Bank of England's support and lending activities are expected to facilitate a quicker recovery than a typical recession.

What makes the current 14% GDP fall unique according to the speaker?

• It is the largest fall in the last decade.

• It is a common occurrence in economic cycles.

• It is unprecedented in modern times.

• It is similar to past economic downturns.

What was the primary reason for the dramatic fall in economic activity?

• A decline in international trade.

• The substantial closure of the economy in March.

• A rise in unemployment rates.

• A decrease in consumer spending.

What is one of the key factors that could lead to a steep economic recovery?

• Increased consumer savings.

• Lifting of the lockdown measures.

• Reduction in interest rates.

• Expansion of international trade.

How does the government plan to support firms during the recovery?

• By increasing import tariffs.

• By implementing a job scheme.

• By reducing taxes.

• By providing free training programs.

What role does the Bank of England play in the economic recovery?

• It provides direct financial aid to citizens.

• It supports lending activities to firms.

• It controls the stock market.

• It regulates international trade policies.