V-shaped Recovery


    In News

    • The FY23 growth would be about 70% on a year-on-year basis and mark a ‘V-shaped’ recovery for the aviation sector.

    V-shaped Recovery

    • About:
      • It is a type of economic recession and recovery that resembles a “V” shape in charting. 
      • It involves a sharp rise back to a previous peak after a sharp decline in these metrics.
      • In a V-shaped recovery, an economy that has suffered a sharp economic decline experiences a fast and strong rebound
      • In this, it is assumed that incomes and jobs are not permanently lost and the economic growth recovers sharply.

    Image Courtesy: wallstreetmojo


    • Causes for Such Recovery:
      • A significant shift in economic activity is caused by rapid readjustment of consumer demand and business investment spending. 
    • Historical Examples:
      • The Depression of 1920 to 1921 (in the U.S.)
      • The Recession of 1953 (in the U.S.)

    Source: FE