k-shaped recovery

Understanding a K-Shaped Recovery

The term “K-shaped” recovery rose to prominence in 2020 in the wake of the sharp recession in the U.S. that accompanied the COVID-19 pandemic, and was used to describe the uneven economic recovery across different sectors, industries, and groups of people in the economy. Unlike other letter-shaped descriptors of economic recessions and recoveries (L-shapedV-shapedU-shaped, or W-shaped), which describe the path of economy-wide macroeconomic aggregate variables like Gross Domestic Product or total employment, a K-shaped recovery describes the path of different disaggregated economic variables, such as income across different segments of society or employment in different industries, relative to one another.




Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.