K-Shaped Economic recovery

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.

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.

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.”

According to the latest round of ICE360 Survey 2021, K-shaped recovery emerges from the economy hit by the coronavirus pandemic.

The survey was conducted by People’s Research on India’s Consumer Economy (PRICE), a Mumbai- based think-tank.