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.

BREAKING DOWN '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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  4. L-Shaped Recovery

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  5. V-Shaped Recovery

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  1. What is a V-shaped recovery and how is it different from other recoveries?

    A V-shaped recovery depicts an economic situation where a severe downturn in the markets is met with an equally strong upturn ... Read Full Answer >>
  2. Which mutual funds made money in 2008?

    Out of the 2,800 mutual funds that Morningstar, Inc., the leading provider of independent investment research in North America, ... Read Full Answer >>
  3. Do interest rates increase during a recession?

    Interest rates rarely increase during a recession. Actually, the opposite tends to happen; as the economy contracts, interest ... Read Full Answer >>
  4. What are the risks of annuities in a recession?

    Annuities come in several forms, the two most common being fixed annuities and variable annuities. During a recession, variable ... Read Full Answer >>
  5. How does the risk of investing in the industrial sector compare to the broader market?

    There is increased risk when investing in the industrial sector compared to the broader market due to high debt loads and ... Read Full Answer >>
  6. How can I hedge my portfolio to protect from a decline in the retail sector?

    The retail sector provides growth investors with a great opportunity for better-than-average gains during periods of market ... Read Full Answer >>

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