How fast can the economy recover from a recession? A faster recovery would look like a V-shaped bounce. A slower recovery would look like a “swoosh.” The path depends on the economic sectors and time series data you look at. Here are some FRED Blog examples that study past episodes.
Slow recoveries:
Mortgage, credit card, and commercial real estate delinquency rates were slow to decline after the 2007-2009 recession.The unemployment rate decreased relatively fast prior to the Great Recession but not so afterward.
Fast recoveries:
Manufacturing activity has recovered fast after recessions –although employment in manufacturing has not.Financial stress quickly decreased after the Great Recession was over
What about the headline economic indicator, gross domestic product? The speed of the recovery of GDP depends on factors such as the immediate cause of the recession, the depth and length of the economic contraction, and global events occurring during the recovery.
In the hope that, even in these
