What is ‘L-Shaped Recovery’
A type of economic recession and recovery that resembles an “L” shape in charting. An L-shaped recovery represents the shape of the chart of certain economic measures, such as employment, GDP and industrial output. An L-shaped recovery involves a sharp decline in these metrics followed by a long period of flat or stagnant growth.
Explaining ‘L-Shaped Recovery’
Many refer to the 1990s-era in Japan as a classic example of an L-shaped recession, where there was an economy that essentially flatlined for a decade. There are countless other shapes a recession and recovery chart can take, including V-shaped, W-shaped, U-shaped and J-shaped. Each shape represents the general shape of the chart of the economic metrics that gauge the health of the economy.
Further Reading
- FDI, economic decline and recovery: Lessons from the Asian financial crisis – www.emerald.com [PDF]
- On economic theory and recovery of the financial crisis – onlinelibrary.wiley.com [PDF]
- China's tourism in a global financial crisis: a computable general equilibrium approach – www.tandfonline.com [PDF]
- Worldwide economic recoveries from financial crises through the decades – www.sciencedirect.com [PDF]
- British politics and the financial crisis – link.springer.com [PDF]
- Three complications in Asian economic recovery – onlinelibrary.wiley.com [PDF]
- Business leaders resigned to turbulent economic future – go.gale.com [PDF]
