U-Shaped Recovery

Definition of 'U-Shaped Recovery'


A type of economic recession and recovery that resembles a "U" shape in charting. Specifically, a U-shaped recovery represents the shape of the chart of certain economic measures, such as employment, GDP and industrial output. A U-shaped recovery involves a gradual decline in these metrics followed by a gradual rise back to its previous peak. Compared to a V-shaped recovery, the U-shaped recovery takes longer to reach levels seen prior to the start of the recession.

Investopedia explains 'U-Shaped Recovery'


There are countless other shapes a recession and recovery chart could take, including V-shaped, W-shaped, L-shaped and J-shaped. Each shape represents the general shape of the chart of the economic metrics that gauge the health of the economy.



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