
What is U-shaped recovery?
A U-shaped recovery is a type of economic recovery that is characterized by a slow and prolonged rebound from a recession. In a U-shaped recovery, economic indicators such as gross domestic product (GDP), employment, and consumer spending typically experience a sharp decline during the recession and then a slow and gradual increase over an extended period of time.
This type of recovery is named after the shape of the recovery curve, which looks like a "U" when plotted on a graph. The recovery can take several years to complete and may involve multiple ups and downs before finally returning to pre-recession levels.
U-shaped recoveries are generally seen as less favorable than V-shaped recoveries, which involve a rapid and strong rebound from a recession, or W-shaped recoveries, which involve a double-dip recession followed by a recovery.
This type of recovery is named after the shape of the recovery curve, which looks like a "U" when plotted on a graph. The recovery can take several years to complete and may involve multiple ups and downs before finally returning to pre-recession levels.
U-shaped recoveries are generally seen as less favorable than V-shaped recoveries, which involve a rapid and strong rebound from a recession, or W-shaped recoveries, which involve a double-dip recession followed by a recovery.
Dec 22, 2022 16:26