According to the state’s economist, it might take two years for the Mississippi economy to completely recover from the COVID-19 recession despite it being the shortest one on record.
Now that numbers for now-concluded fiscal 2020 are in, comparisons can be made between COVID-19 recession and the Great Recession that lasted from December 2007 until June 2009.
Darrin Webb is the state’s economist for the Institutes for Higher Learning. He told the Northside Sun that he believes this recession is likely to be a lot shorter than the Great Recession, which lasted about 18 months before recovery began. According to Webb, the COVID-19 downturn will be the shortest recession on record.
He said the consensus for most economists is that the COVID-19 related recession began in March and ended in May, but that the biggest difference between the two was that 2020 had a much deeper dive when it comes to economic activity (11.3 percent decline vs. a 3.3 percent decline during the Great Recession).
The business community agrees with Webb, according to research from accounting firm Ernst & Young Global Limited. According to a March survey of corporate executives called the Global Capital Confidence Barometer, 54 percent think that the recovery will be a slower one that extends in 2021.
Webb thinks the commonality between both recessions is that the recovery time could take nearly two years for gross domestic product (which is a measure of all economic activity) levels to rebound to pre-recession levels.