Blackstone’s Stephen Schwarzman forecasts “big V” recovery

The CEO said it will still take “quite a while” for economic activity to return to 2019 levels

Blackstone Group CEO Steve Schwarzman (Getty)
Blackstone Group CEO Steve Schwarzman (Getty)

Will the economy’s recovery from the pandemic resemble a U, V or W-shape?

Blackstone Group CEO Stephen Schwarzman is firmly in the V camp, according to his statements at Bloomberg Invest Global’s virtual event.

“You’ll see a big V in terms of the economy going up for the next few months because it’s been closed,” he said, though he noted that the upward climb would take “quite a while” before it matched 2019 levels.

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His statements are in line with Blackstone’s strategy to deploy some of its $152 billion in dry powder as the health crisis continues to strain companies and assets.

Schwarzman also predicted that China’s growth would continue to outperform developed countries by two or three times the rate due less dependence on exports.

According to Bloomberg, Schwarzman has occasionally served as an intermediary between the U.S. and China, advised President Donald Trump and was in the White House when phase one of the trade deal between the countries was announced in December. [Bloomberg] — Erin Hudson