U, V, L or W?
April 13, 2020
What shape will the eventual U.S. economic recovery take? Forbes reports that a fast “V” shaped recovery is highly unlikely. A “U” shape would be the next best scenario. The most famous “U” recovery in the U.S. was from 1973 to 1975. An “L” shaped recovery is the most dramatic type of recession and recovery. Because there is a drastic drop in economic growth and the economy does not recover for a significant period, an “L” shaped recession is often called a depression. The Greek recession (2007-2016) and Japan’s lost decade (1990s) are considered prime examples of “L” recoveries.