Explanation – A K-shaped recovery is a type of economic recovery in which different sectors or groups of people recover at different rates, resulting in a recovery that looks like the letter K when charted on a graph. In a K-shaped recovery, some sectors or groups experience rapid growth and recovery, while others continue to struggle.

In a K-shaped recovery, high-income individuals and sectors that are well-positioned for the post-recession economy, such as technology-related industries, are likely to experience rapid growth and recovery.

On the other hand, low-income individuals and sectors that were hit hardest by the recession, such as traditional manufacturing sectors, may continue to struggle. The K-shaped recovery can exacerbate existing inequalities and create new ones, leading to social and political tensions.

Source: Forum IAS