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What Is a K-Shaped Recovery?
A K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times, or magnitudes. This is in contrast to an even, uniform recovery across sectors, industries, or groups of people.

A K-shaped recovery leads to changes in the structure of the economy or the broader society as economic outcomes and relations are fundamentally changed before and after the recession. This type of recovery is called K-shaped because the path of different parts of the economy when charted together may diverge, resembling the two arms of the Roman letter "K."

KEY TAKEAWAYS
A K-shaped recovery is one in which the performance of different parts of the economy diverges like the arms of the letter "K."
In a K-shaped recovery, some parts of the economy may experience strong growth while others continue to decline.
Unlike other letter-shaped descriptors focused on large aggregates, a K-shaped recovery is described in terms of data broken out across different parts of the economy.
The meaning of a K-shaped recovery depends on the choice of how to disaggregate data across the economy.