Automatic saving app Chip spokesman and money expert Tom Martin said: “Other than the obvious doom and gloom (job losses, shop closures etc.) there’s a few ways it can play out.
“Depending on the situation, the government generally reacts by injecting cash into the economy. We’ve seen this with the furlough and the Eat Out to Help Out schemes. Generally, interest rates are lowered.
“This means borrowing gets cheaper, but decent savings rates are hard to come by.
“For the COVID-19 recession, both of these trends are likely to continue, unless we start to see runaway inflation (where prices increase), when the government would ease up their spending policies.
“The jobs market will likely be tough, but this can depend on your skills, experience and industry. Some jobs are usually pretty recession-proof, whereas others are much more sensitive.
“If you can, consider the bigger picture, think what industries are growing and what skills will be in demand. The UK’s tech industry will likely continue to grow with digital jobs becoming ever more important.
“Recessions also usually trigger big changes to society and the economy.
“For example, the oil crisis of 1973 ultimately resulted in a major restructuring of traditional industrial jobs, saw many more women enter the workforce and the eventual dominance of the service industry in the UK.
“The dotcom bubble of 2002 was the catalyst for tech giants like Amazon to emerge from the fallout.
“In this case, COVID-19 and lockdown is acting as a spark that’ll likely accelerate some big changes that were already underway.”