What is ‘W-Shaped Recovery’
An economic cycle of recession and recovery that resembles a “W” in charting. A W-shaped recovery represents the shape of the chart of certain economic measures such as employment, GDP, industrial output, etc. A W-shaped recovery involves a sharp decline in these metrics followed by a sharp rise back to the previous peak, followed again by a sharp decline and ending with another sharp rise. The middle section of the W can represent a significant bear market rally or a recovery that was stifled by an additional economic crisis.
Explaining ‘W-Shaped Recovery’
A W-shaped recovery generally characterizes a period of extreme volatility compared to other types of recoveries. There are countless other shapes a recession and recovery chart could take, including L-shaped, V-shaped, U-shaped and J-shaped. Each shape represents the general shape of the chart of economic metrics that gauge economic health.
Further Reading
- Sukuk bond: The global Islamic financial instrument – mpra.ub.uni-muenchen.de [PDF]
- Understanding the Asian financial crisis – books.google.com [PDF]
- Financial restructuring in East Asia: halfway there? – elibrary.worldbank.org [PDF]
- V-, U-, L-or W-shaped recovery after COVID? Insights from an Agent Based Model – papers.ssrn.com [PDF]
- Dynamic interfacial tensions between offshore crude oil and enhanced oil recovery surfactants – www.tandfonline.com [PDF]
- How international tourism is coping with the consequences of the financial and economic crisis – books.google.com [PDF]
- Section 3. Financial markets and financial institutions – ideas.repec.org [PDF]
- Coping with accelerated capital flows from the globalization of financial markets – www.jstor.org [PDF]
