The Gross domestic product (GDP) in the G20 area rebounded by 8.1 per cent in the third quarter of 2020, but remained 2.4 per cent below its pre-pandemic high of the final quarter of 2019, the Organization for Economic Cooperation and Development (OECD) said.
Many G20 economies rebounded with double-digit numbers in the third quarter after double-digit falls in the second quarter, Xinhua news agency quoted the OECD as saying in a statement on Monday.
GDP in India rebounded strongest, by 21.9 per cent, following a fall of 25.2 per cent in the second quarter, the sharpest drop ever recorded, according to the statement.
With a sharp recovery seen in GDP contraction in the second quarter period, rating agency Crisil has revised upwards its growth projections for India.
A Crisil research report said on Monday that India’s fiscal 2021 real gross domestic product (GDP) will now contract by 7.7 per cent as against a contraction of 9 per cent forecast in September.
A faster-than-expected revival in activity in the second quarter, which continues into the festive season, is one of the reasons for the revision, the agency said in its research report.
Consistent decline in the overall Covid-19 case load is the other, it added.
Crisil, however, said that inadequate fiscal spending remains a constraint, while the possibility of a second wave of afflictions, uncertainty regarding availability of vaccine, and hiccups in global economic revival due to resurgence of cases, call for caution.
“In fiscal 2022, GDP growth is expected to spurt to 10 per cent, led by a very weak base and some global ‘rising tide’ effect. We estimate a permanent loss to the economy at 12 per cent in real GDP terms,” Crisil said.
GDP also rebounded in France (by 18.7 per cent, following a contraction of 13.8 per cent), Italy (by 15.9 per cent, after minus 13.0 per cent), Turkey (by 15.6 per cent, after minus 10.8 pe rcent), the UK (by 15.5 per cent, after minus 19.8 per cent), South Africa (by 13.5 per cent, after minus 16.6 per cent) and Mexico (by 12.1 per cent, after minus 17.0 per cent).
Other major economies also saw their economies grow in the third quarter, 8.9 per cent in Canada; 8.5 per cent in Germany; 7.7 per cent in Brazil; 7.4 per cent in the US; 5.3 per cent in Japan; 3.3 per cent in Australia; 3.1 per cent in Indonesia; 2.1 per cent in South Korea and 1.2 per cent in Saudi Arabia.
“GDP in the G20 area as a whole remained significantly below the levels of the same quarter a year earlier (minus 2 per cent), with only Turkey and China recording positive growth of 5.4 per cent and 4.9 per cent, respectively, while the UK experienced the largest fall (minus 9.6 per cent),” the statement added.
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