Famed New York-based economic bear Nouriel Roubini called it a LUV recovery
. The euro-zone economies, tipped by the IMF to grow a tepid 1.5 per cent this year, were in an L-shaped path out of the crisis. The US is in a U-shaped recovery, tipped to expand a sub-par 3 per cent this year. America's big corporates are in good shape, having pared back their costs and built up massive cash reserves. Yet the emerging markets — led by 9 per cent-plus China and 8 per cent India — are the V.
—Michael Stutchbury, "Welcome to the new world order
," The Australian
, January 29, 2011
At the recent World Economic Forum policy-makers discussed what kind of recovery the global economy will be looking at. Some suggested the acronym LUV
would be a good description: A conventional V recovery in Asia, a more sluggish U recovery in the United States and an L recovery in Europe, illustrating the shape of the growth curve going into and coming out of the recession.
—Marius Gustavson, "Will We Have a LUV Recovery?
," Reason Foundation
, February 26, 2010
Going forward, Sir Martin says we'll see a "LUV" recovery: a Little recovery in Europe, a U-shaped one in the United States, and a V-shaped one in Asia.
—Nicholas Carlson, "Turnaround? 'We Have Not Seen It,' Says Sorrell
," The Business Insider
, October 5, 2009
When they graph economic growth (or contraction) rates over time, financial types become positively pareidolic
when they claim to perceive recognizable shapes in those graphs. The most common are the L-shaped recovery
(first use circa 1975), where the economy falls sharply and then limps along with little or no growth for a while; the U-shaped recovery
(c. 1961) where the economy falls, shows moderate growth for a while, and then recovers sharply; and the V-shaped recovery
(c. 1958) where the economy falls but then rebounds almost immediately. I'll leave it as an exercise for the reader to figure out what a W-shaped recovery
(c. 1958) entails.
Although the full phrase LUV recovery dates to October 2009, the first use of the acronym LUV (or, in this case L-U-V) occurred a few months earlier:
It's starting to look like the Summer of Love. Two reasons: The recovery is taking on a L-U-V
shape globally, and it's going to require huge amounts of love and nurturing to keep growth alive.
L stands for Europe...The United States sports a U...V stands for Asia.
—"It's the Summer of L-U-V," Reuters, July 3, 2009