• Economic recovery is the process of reallocating resources and workers from failed businesses and investing in new jobs and uses after a recession.

  • The economic recovery follows the recession and leads to a new phase of the expansionary economic cycle.
  • Leading indicators such as the stock market, retail sales and business openings often rise before the economy recovers.
  • Public policy can sometimes help or hinder the process of economic recovery.
  • During economic recovery, central banks may pursue monetary policy aimed at increasing the money supply and encouraging lending.