W-Shaped Recovery

AAA

DEFINITION of '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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Global Recession

    An extended period of economic decline around the world. The ...
  2. Jobless Recovery

    An economic recovery, following a recession, where the economy ...
  3. U-Shaped Recovery

    A type of economic recession and recovery that resembles a "U" ...
  4. V-Shaped Recovery

    A type of economic recession and recovery that resembles a "V" ...
  5. L-Shaped Recovery

    A type of economic recession and recovery that resembles an "L" ...
  6. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
Related Articles
  1. Industries That Thrive On Recession
    Economics

    Industries That Thrive On Recession

  2. A Review Of Past Recessions
    Insurance

    A Review Of Past Recessions

  3. Stashing Your Cash: Mattress Or Market?
    Investing Basics

    Stashing Your Cash: Mattress Or Market?

  4. The Impact Of Recession On Businesses
    Entrepreneurship

    The Impact Of Recession On Businesses

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center