A ducted fan is provided including a fan casing surrounding a plurality of fan blades mounted to a rotating drive shaft. The plurality of blades define a tip stagger angle of greater than 68 degrees and the fan casing defines an annular recess defined by an inner wall of the fan casing, the annular recess extending about the circumferential direction proximate a blade tip of each of the plurality of blades. The annular recess may define an average recess depth greater than 10 percent of the tip chord length. The annular recess may also define a length ratio equal to a recess length over the tip axial chord length that is greater than 1.5.