Green Shoots

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Context

Green shoots of recovery are appearing among start-ups despite funding challenges.

Green Shoots:

• About: The term "green shoots" refers to early signs of economic recovery emerging during an economic downturn.
• Reference and Analogy: It draws on the fact that green shoots which appear above the earth are the first visible signs of growth of a plant.
• First use of the term: The term Green Shoots was first used by a U.K. chancellor Norman Lamont during the 1991 recession.
• Interpretation: Particularly after a recession, green shoots are welcome as symbols of the fact that the economy is slowly treading the path upward.

Note: There is no consensus on what exactly constitutes green shoots.

General Examples:

Positive economic data and statistics like the following are generally considered as Green Shoots:

• Recovery of the banks whose failure literally brought on the financial crisis.
• Consistent rally of stock markets globally.
• Recovery and stabilisation in the prices of commodities like oil and gold.
• Reduction in unemployment.

PRACTICE QUESTION Q. The term "green shoots," is often in news. What does it refer to in Economy? A. Early indicators of economic recovery following a downturn. B. Initial signs of inflationary pressures in a growing economy. C. Preliminary stages of financial instability within a market. D. Early warning signals of a potential recession.   Answer: A) Explanation The term "green shoots" refers to early signs of economic recovery emerging during an economic downturn. It draws on the fact that green shoots which appear above the earth are the first visible signs of growth of a plant. The term Green Shoots was first used by a U.K. chancellor Norman Lamont during the 1991 recession.

SOURCE: TELEGRAPH INDIA