posted on 06-06-2019
W-Shaped Recovery
Updated October 1, 2019
What it is:
A W-shaped recovery refers to two consecutive cycles of economic decline and growth that graphically resemble the letter "W."
How it works/Example:
A W-shaped recovery graphically expresses what is frequently termed a "double-dip recession."
In a W-shaped recovery, the first phase of economic expansion follow a recession does not last, and the economy falls back into recession relatively soon thereafter. However, the second recovery, shown as the right upward stroke of the W, does gain traction and long-term economic expansion persists.