Different shapes of recovery

•K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times, or magnitudes.

•V-shaped recovery, an economy that has suffered a sharp economic decline experiences a fast and strong rebound

•W-shaped recovery, which is also called a “double dip”, means the economy picks up only to fall again and then starts rising

•L-shaped recovery is characterised by a slow rate of recovery, with persistent unemployment and stagnant economic growth

•J-shaped recovery: It is a somewhat unrealistic scenario, in which growth rises sharply from the lows much higher than the trend-line and stays there.

Leave a Comment