K-Shaped Recovery:
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A K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times, or magnitudes. This is in contrast to an even, uniform recovery across sectors, industries, or groups of people.
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A K-shaped recovery leads to changes in the structure of the economy or the broader society as economic outcomes and relations are fundamentally changed before and after the recession.
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This type of recovery is called K-shaped because the path of different parts of the economy when charted together may diverge, resembling the two arms of the Roman letter “K.”
Examples:
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Industries like technology, retail, and software services have recovered while the travel, entertainment, hospitality, and food services industries have continued to decline.
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India’s stock market is healthy while millions have lost their jobs and private consumption has collapsed.
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Why in News: According to Economists, Indian economy is heading for a K-shaped recovery.