U-Shaped Recovery
A "U-Shaped Recovery" refers to an economic pattern where a downturn is followed by a gradual recovery that resembles the letter "U." Initially, the economy experiences a decline, often due to factors like a recession or external shocks. After reaching a low point, the economy slowly begins to improve, taking time to regain its previous strength.
This type of recovery contrasts with a "V-Shaped Recovery," where the economy rebounds quickly. In a U-Shaped Recovery, the prolonged period of stagnation can lead to lasting impacts on employment and investment, as businesses and consumers take time to regain confidence in the economy.