New Delhi: The Covid-19 global pandemic has ravaged the world economy. Out of 16 major economies in G20, all of them suffered negative growth in the first quarter with the only exception of China, which, despite initial lockdown in the Wuhan region, recorded a 3.2% growth in the first quarter and finished the year with an overall 8.25% growth. China achieved an impressive 18.3% growth in the fourth quarter.
Among the G-20 countries, Spain and UK were the worst performers as they both recorded more than 21% negative growth in the first quarter, and the trend of negative growth continued throughout the year as they both ended the year with over 10% negative growth. Out of eight advanced economies in G20, seven countries recorded negative growth in double digits in the first quarter. UK recorded a negative growth of -21.4%, Spain (-21.6%), France (-18.4%), Italy (-18.1%), Canada (-12.7%), Germany (-11.2%), and Japan (-10.2%).The only exception was the US whose GDP decline was in single digit, -9% in the first quarter.
All eight rich nations reported a decline in their GDP in the first three quarters of the year with the UK, Spain and Italy reporting the biggest decline. The UK was the worst performer as it ended the year with the highest negative growth of 6.1% in the fourth quarter. Only three of these eight rich countries, were able to turn the corner by the year-end as France recorded 1.2% positive growth in the fourth quarter, followed by the USA 0.4% and Canada 0.3%.
In case of emerging economies, except China, seven major emerging economies, including India recorded sharp negative growth. While India suffered the biggest decline in GDP in the first quarter, it was followed by Mexico (-18.7%), South Africa (-17.5%), Brazil (-10.9%), Turkey (-8.7%), Indonesia (-5.4%), and Russia (-4.6%).
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Even during the pandemic, China's economic growth was unrivalled by any yardstick as the country not only had double-digit growth in the fourth quarter at an impressive 18.6% but also had positive growth in all quarters of the economy. It recorded 3.2% growth in Q1, 4.9% growth in Q2 and 6.5% growth in the third quarter and 18.3% in Q4, ending the year with a GDP growth of 8.22%. Another country that stands out among the grouping is Turkey, which not only achieved a higher growth rate of 6.7% in the Q4 but it also managed to maintain a positive growth rate in three of four quarters.
Turkey recorded negative growth of -8.7% in Q1, but it turned the tide with 5.4% growth in Q2, 5% growth in Q3 and 6.7% in Q4, ending the year with an annual GDP growth rate of 2.1%. India is the third country among the 16 major economies in G20 that recorded positive growth in the last two quarters, as it showed a sharp turnaround from a negative growth of - 24.4%, -7.3% in the first two quarters and then bounced back to record 0.5% growth in the third quarter and 1.6% growth in the last quarter of previous fiscal.
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In case of eight major emerging economies in the G20, whose data was analysed by the finance ministry, three out of eight countries recorded positive growth in the last quarter, China recorded 18.3% growth, Turkey 6.7% and India 1.6%. The GDP data of the fourth quarter of three other countries – Russia, South Africa and Brazil was not available.
Surprisingly enough, India's GDP growth which suffered the biggest contraction among major economies in the first quarter, -24.4%, ended the Q3 and Q4 with positive growth and joined the league of 4 of the total 20 economies that turned the tide in Q4 by achieving more than 1% growth rate.
