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A V-Shaped Recovery? Think "Swoosh" Instead

Michael Rainey

Some politicians are promising a “v-shaped” recovery, in which the economy bounces back from its coronavirus-induced swoon and rapidly returns to its pre-crisis trajectory, but many experts are now focused on a “swoosh-shaped” rebound, according to The Wall Street Journal Monday. With a swoosh, the economy bounces back but takes a much longer time to return to the trend line. Other possibilities being debated by economists include U, Z, W and L-shaped recoveries, each with its own peculiar dynamics.

Although there is still enormous uncertainty about how a recovery will play out, it’s becoming increasingly likely that it will take a significant amount of time. “This is not going to be a quick recovery,” Mark Schneider, chief executive of Nestlé SA, told the Journal. “This is going to be a several-quarter, if not several-year kind of process.”

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