Global economy begins recovery; G20 countries post growth in Q3

By Rahul Vaimal, Associate Editor
G20
Representational Image

Following unprecedented declines in the first half of the year due to COVID-19 containment measures, the world’s 20 largest economies have rebounded in the third quarter of 2020, the Organisation for Economic Co-operation and Development (OECD) said.

Compared to the second quarter of this year the G20 countries’ gross domestic product (GDP) grew 8.1 percent in the third quarter of 2020, the Paris-based global intergovernmental organization said in a report. This however, remained 2.4 percent below the pre-pandemic peak of 2019’s last quarter.

Country-wise growth rate

India, the fifth largest economy in the world, posted the largest rebound of 21.9%, following a record fall of 25.2% in the second quarter of 2020.

According to OECD data, other G20 countries reported double-digit GDP growth in the third quarter following a double-digit contraction in the previous quarter. France grew 18.7 percent, Italy expanded 15.9 percent, the UK 15.5 percent, South Africa 13.5 percent and Mexico 12.1 percent.

In the third quarter, the US, the world’s largest economy, grew 7.4 percent after a 9 percent fall in the second quarter of this year, OECD data showed. Saudi Arabia, the only Arab country in the G20, reported 1.2 percent growth compared to 4.9 percent in the second quarter.

The G20 nations represent 85 percent of the nominal GDP of the world. The European Union and 19 other countries are part of this group of 20 biggest industrialized nations.

The G20 bloc as a whole remained below the levels of the same quarter a year earlier in a year-on-year comparison, with a contraction of two percent, the OECD said. Only Turkey and China, the second-largest economy in the world, reported positive annual growth of 5.4 percent and 4.9 percent, respectively. The UK reported the largest drop of 9.6 percent.

The coronavirus has claimed more than 1.6 million lives and more than 72.7 million people have been infected globally. About 50.9 million individuals have recovered. In the US which is the worst-affected country in the world, shots against COVID-19 are to be given this month, while the UK began vaccinations last week.

“The COVID-19 pandemic which the worst health, economic and social crisis since the Second World War is an opportunity to “build back better”, Pedro Sánchez, Spain’s prime minister, and Angel Gurría, Secretary-General of the OECD, said in a joint statement.

“We need to work together to develop effective global solutions for today’s global challenges: the COVID-19 recovery, climate change, biodiversity loss, growing inequalities, the concentration of wealth, digitalization, or the future of work,” they said.

The top three priorities for recovery are to eradicate the virus, create conditions for a broad-based recovery and ensure inclusive growth, they added.

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