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Double Dip Recession
(redirected from W-Shaped Recovery)

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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.


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However, entering a W-shaped recovery could become a real possibility if businesses are overly optimistic in their planning and forecasting.
 
 
 
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