G20 Q2 Economic Growth Rate Forecasted at -11%... Lowest Level Ever Recorded

[Asia Economy Reporter Jeong Hyunjin] Due to the impact of the novel coronavirus infection (COVID-19), the gross domestic product (GDP) of the Group of Twenty (G20) countries in the second quarter of this year is projected to fall by -11%, marking the lowest level since the G20's inception.

On the 26th, according to growth rate forecasts compiled by Bloomberg News from global investment banks (IB) and economic research institutes, the G20 countries' GDP growth rate in the second quarter was only -11.0% compared to the same period last year.

This is the lowest level since the Organisation for Economic Co-operation and Development (OECD) began separately tracking G20 growth rates in 1999. The G20 was launched in 1999 in response to the Asian financial crisis. According to the OECD, the previous lowest quarterly growth rate for the G20 was -2.4% in the first quarter of 2009 during the global financial crisis.

By country and region, only three G20 countries?China (1.5%), India (2.0%), and Indonesia (5.0%)?are expected to show positive growth. In particular, China recorded a growth rate of -6.8% in the first quarter, the lowest ever, but as the COVID-19 situation subsided somewhat earlier than in other countries, a rebound is expected in the second quarter. South Korea's second-quarter growth rate is forecasted at -0.2%.

On the other hand, major European countries such as Italy (-12.1%), the United Kingdom (-11.0%), and France (-10.3%) are expected to record significant negative growth rates in the second quarter of this year. The second-quarter GDP of the United States and Canada (annualized quarter-on-quarter basis) is expected to contract by 26.0% and 28.1%, respectively.

This content was produced with the assistance of AI translation services.