Given the weakness of the economy going into the COVID crisis as well as the less than adequate fiscal stimulus, India is likely to end up with an elongated U-shape recovery, although some experts have predicted other shapes of recovery.
About:
Z-shaped recovery: The economy quickly rises after a crash. It more than makes up for lost ground before settling back to the normal trend-line, thus forming a Z-shaped chart.
V-shaped recovery: The economy quickly recoups lost ground and gets back to the normal growth trend-line.
U-shaped recovery: The economy, after falling, struggles and muddles around a low growth rate for some time, before rising gradually to usual levels.
W-shaped recovery: The growth falls and rises, but falls again before recovering yet again, thus forming a W-like chart, depicting a double-dip.
L-shaped recovery: The growth after falling, stagnates at low levels and does not recover for a long, long time.
J-shaped recovery: The growth rises sharply from the lows much higher than the trend-line and stays there.
Swoosh shaped recovery: This is similar to the Nike logo — in between the V-shape and the U-shape. Here, after falling, growth starts recovering quickly but then, slowed down by obstacles, moves gradually back to the trend-line.
Inverted square root shaped recovery: In this scenario, while there could a rebound from the bottom, the growth slows and settles a step down.
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