Could America be seeing a 'K-shaped recovery' from the coronavirus crisis?

US economists have begun talking about a “K-shaped recovery” from the coronavirus crisis amid signs of stark differences in the impact on the richest and poorest Americans. It is based on the idea that wealthy Americans will quickly recover from the financial freeze triggered by the virus, keeping their jobs and seeing the value of assets rise. However those lower down the income scale, such as blue collar workers, are bearing the brunt of the redundancies and could be facing years of financial peril. Hence the idea that one cohort will bounce back from the economic impact of the pandemic rapidly - the upwards kick of the K - while another will drop down into long-term financial challenges. The model is being offered as an alternative to the “V-shaped recovery”, where the economy as a whole quickly starts growing again - something Donald Trump, the US president, is targeting.

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