The post-lockdown scars

As economic indicators and tax receipts improve, evidence of stress begin to appear too

While assessing the post-pandemic economy, last month’s Tessellatum (“After the Storm”, October 6), expected upper-income wage earners to exit the lockdown with higher financial savings, and lower-income households to be left with fewer assets and higher debt. Further, with corporate losses only a fraction of the total lost gross domestic product (GDP), it argued that the bad loans for banks would be far lower than feared.

Data released over the past month supports these assessments. As upper-income households have got the opportunity to spend, categories more dependent on them have rebounded first. For example, luxury carmakers have had a strong