What a K-shaped recovery means, and how it highlights a nation's economic inequalities - Business Insider

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What a K-shaped recovery means, and how it highlights a nation's economic inequalities

, the talk of economic recovery in shapes named after letters is one way for economists to forecast the financial future.

When compared to other recovery shapes, the K-shaped recovery poses a troubling, divergent economic future, one where the economy rebounds unevenly, and where the wealthy benefit while just about everyone else gets left behind. This is quite unusual. Traditionally, when the economy dips, it's felt throughout every industry and demographic, and vice-versa when the economy eventually recovers. Of course, the impact is often greater on some than on others. But overall, nations and people all experience economic orWhy the divergence in reaction with the K-shaped recovery? The theory is that it stems from pre-existing social and economic divides that are then exacerbated by a recession or other economic catastrophe.

 

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