K-shaped recovery

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Economics - recessions - recovery.

A "K" shaped recovery is characterised by a divergence in the recovery - or continued decline - of different sectors of the economy.

A chart of the key economic measures would resemble a letter "K".

Recovery forecasts diverge
"The impact of COVID-19 is likely to preoccupy businesses into 2021.
As of early October [2020], financial markets appear to be pricing in a recovery.

However, contingent on developing and rolling out an effective vaccination programme, economists disagree as to whether the recovery will be shaped as a ‘V’ (fast), ‘L’ (slow), ‘W’ (a second or even third wave of the virus) or – perhaps more insightfully – a ‘K’ (growth for some sectors, decline for others)."

The Treasurer magazine, December 2020, p30 - ACT Technical briefing.

See also