Visualizing Economic Decline and Recovery

Good graphic from McKinsey comparing decline and recovery across the last four U.S. downturns, compared to the current one. McKinsey argues that the current downturn, far from being unprecedented, matches much of what we saw in the preceding one.

That is true, of course, but at a high level it is also a mathematical truism, so it’s not particularly surprising. What’s different is what matters, and that flows from the origins of the current downturn in credit markets, as opposed to being rooted in the normal business cycle.


decl-recov

[via McKinsey]