Gita Gopinath, Chief Economist of the International Monetary Fund (IMF) has confirmed that the Indian economy may have contracted the most among the G-20 peers in the April-June quarter (25.6 per cent) of FY21. She shared a detailed graph on Twitter showing the gross domestic product (GDP) growth rate of G-20 economies on a quarter-on-quarter non-annualised basis. Gopinath said that she expects economic recovery to take place in the September quarter. However, the year 2020 may continue to see significant shrinkage, she tweeted.
"In #GreatLockdown Q2 (June quarter) 2020 GDP growth at historical lows. Graph puts G20 growth numbers on a comparable scale, quarter-on-quarter non-annualised. Should expect rebounds in Q3 (September quarter) but 2020 overall will see major contractions. China recovers strongly in Q2 after collapse in Q1 (March quarter)." Gopinath tweeted on Wednesday.
In #GreatLockdown Q2 2020 GDP growth at historical lows. Graph puts G20 growth numbers on a comparable scale, quarter-on-quarter non-annualized. Should expect rebounds in Q3 but 2020 overall will see major contractions. China recovers strongly in Q2 after collapse in Q1. pic.twitter.com/OcgaZsrAD6— Gita Gopinath (@GitaGopinath) September 2, 2020
The Indian economy contracted the most in the given quarter followed by the UK ( 20.4 per cent), Spain (18.5 per cent), Mexico (17.1 per cent), France (13.8 per cent) and Italy (12.8 per cent). The US economy is shown to have shrunk 9.1 per cent on a quarterly basis. China is the only country to not have registered GDP contraction as it grew by 12.3 per cent over the March quarter on a non-annualised basis.
Meanwhile, India's April-June quarter GDP contracted by a massive 23.9 per cent year-on-year (YoY), the first GDP contraction in more than 40 years. As per the National Statistical Office (NSO), gross value added (GVA) contracted 22.8 per cent.
While the pandemic caused historic GDP contractions in economies around the world, the situation in India has been made worse by more than 78,000 new infections a day and total cases topping 35 lakh, behind only the US and Brazil.Also read: Worst in 24 years! India's Q1 GDP contracts 23.9% in June quarter