While there are extremely high uncertainties over the outlook for economic activity, as I will address later, the Bank assumes in the April Outlook Report that the impact of the spread of COVID-19 will wane on a global basis through the second half of 2020, which generally is in line with the baseline scenario presented by the IMF.
The reason why market value fails to capture intrinsic economic value is because of the gap between what is good for the individual and what is good for society – the problem of externality. The other reason is the time horizon factor viz. the initial returns and long term sustainability of the returns.