THe K Shaped Recovery

Since the onset of the pandemic, there have been many predictions about how this current crisis will play out. Many economists forecast the economic recovery with a letter such as a U or a V. In a V shaped recovery, there decline in the financial markets and the real economy but then a quick rebound back to levels before the correction or slowdown or recession. The U shaped recovery describes a decline with a bottoming out process that lasts for some time before economic conditions improve to pre crisis levels. As of late, we have been hearing about the K shaped recovery. Simply put, the phrase implies winners and losers during this time frame.