Double Dip Recession

(redirected from W-Shaped Recovery)

Double Dip Recession

A long-term macroeconomic trend characterized by a recession, a recovery, then another recession. For example, the United States economy entered a recession in 1929, which continued until 1933. Recovery continued until 1937, at which point a second recession began. Double-dip recessions often have weak recoveries in between the recessions (though the example above included some years of very strong growth); analysts therefore tend to worry about a double-dip recession when a recovery is weak.
References in periodicals archive ?
The fact executives see the full recovery stretched into 2012 may mean a slower rebound, but also may indicate a sustainable recovery rather than a possible W-shaped recovery which has been a concern in some markets," said Gary Matuszak, partner, global chair and U.
There is a lot of debate about what kind of recovery we will have--a V-shaped recovery or a W-shaped recovery.
If we cannot, there will be inflationary pressures and then it may be a W-shaped recovery, not a V-shaped recovery.
Corporate boardrooms may become risk-averse again if they feel a W-shaped recovery is becoming likely amid high unemployment, household deleveraging and continued dependence on transitory stimulus measures.
Local analysts say a W-shaped recovery -during which a return to growth is followed by another fall in output -is a distinct possibility.
So rather than getting a V-shaped recovery you get a U or even W-shaped recovery in which case the likelihood is that .
However, entering a W-shaped recovery could become a real possibility if businesses are overly optimistic in their planning and forecasting.