Definition of Green Shoots





What is the definition of the term "green shoots?

Unless you have been living under a rock over the past few months, then you have surely heard the term "green shoots" being used on television.

What is the definition of "green shoots" as it applies to the economy?

financial term definition - green shootsThe quick and easy answer - "green shoots" represent the beginnings of economic growth after a recession.

Imagine that you walked into your backyard with a flamethrower and set fire to your lawn.

Imagine that when you were done, all of your grass was black and dead.

Now, after a couple of weeks, you start to notice that green shoots of grass are sprouting out of the dead and black landscape.

Think of your dead lawn as the economy.

Think of the flamethrower as the recession.

Think of the green shoots of grass as the beginnings of economic growth.

You can't have a green and lush backyard without first having some green shoots of grass.

"Green shoots", as it applies to the economy, may be a downtick in unemployment numbers, an uptick in retail sales or an uptick in consumer confidence.

These all represent the beginnings of economic growth after a recession has taken place.

Now, whether or not "green shoots" are actually sprouting from our economic landscape is a different question altogether.




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