V-shaped Recovery

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• The FY23 growth would be about 70% on a year-on-year basis and mark a ‘V-shaped’ recovery for the aviation sector.

V-shaped Recovery

• About:
  • It is a type of economic recession and recovery that resembles a “V” shape in charting. 
  • It involves a sharp rise back to a previous peak after a sharp decline in these metrics.
  • In a V-shaped recovery, an economy that has suffered a sharp economic decline experiences a fast and strong rebound. 
  • In this, it is assumed that incomes and jobs are not permanently lost and the economic growth recovers sharply.

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• Causes for Such Recovery:
  • A significant shift in economic activity is caused by rapid readjustment of consumer demand and business investment spending. 
• Historical Examples:
  • The Depression of 1920 to 1921 (in the U.S.)
  • The Recession of 1953 (in the U.S.)

Source: FE