COVID-19 effect: Economies across the globe contract

AgenciesUpdated: Tuesday, September 01, 2020, 12:30 AM IST
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Coronavirus in Panvel | BL Soni/ FPJ Photo

While India reported a contraction of 23.9 per cent in the first quarter GDP, the economies across the globe also witnessed a contraction, replicating a negative trend.

Here is a look at the global economies. The US reported a higher contraction in April-June quarter. Its GDP during its Q2 (April-June) contracted 32.9 per cent. Yet, the dismal result is not the worst out there when comparing with other countries' GDP figures.

Germany announced a non-annualised GDP growth of (-) 10.1 per cent compared to Q1 of 2020. France and Italy, which were severely hit by the pandemic in the months between April and June 2020, witnessed even bigger GDP contractions.

Canada also recorded a major contraction in the economy. The Chinese economy contracted by 6.8 per cent between January and March -- (-) 9.8 per cent as per official OECD figures.

South Korea, which kept its economy largely open despite coronavirus outbreaks occasionally rising in the country, witnessed a GDP contraction of 3.3 per cent in Q2, after GDP had fallen by 1.4 per cent in Q1.

Speaking of the contraction in India' GDP, Chief Economic Adviser KV Subramanian attributed the economic performance in the last quarter to "an exogenous shock that has been felt globally", referring to the pandemic and there sultant lockdown.

"As the world economic outlook has highlighted the fraction of countries where the GDP per capita would decrease is the highest since 1870. So once in a one and half century event which is what we are going through," the CEA said.

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