World largest economies has hit badly due to pandemic but China’s economy rising after fall
New Delhi: India’s gross domestic product (GDP) has declined by a historic 23.9 percent in the first quarter of April to June amid the coronavirus epidemic. The fall in GDP due to the Corona crisis was feared by many analysts, but the figure that came on Monday was more than that. Although the state of the economy was already in crisis, the nationwide lockdown imposed to prevent the corona virus infection proved disastrous.
The lockdown imposed to deal with the Coronavirus epidemic caused a huge reduction in demand and investment. India started releasing data on GDP every three months from 1996. It is the worst ever since.
पूरे साल यानी सभी तिमाहियों में शून्य से नीचे की #GDP दर की संभावना
2020-21 का वित्त वर्ष नकारात्मक विकास दर के साथ खत्म होने के आसार https://t.co/rS219aQFkJ
— anshuman tiwari (@anshuman1tiwari) August 31, 2020
India is the sixth largest economy in the world and Prime Minister Narendra Modi’s dream is to increase the size of the Indian economy to $ 5 trillion
One picture illustration of what went wrong with India’s lockdown policy. It shut down the economy totally & forced millions of migrant workers to scatter all over the country. This stalled the economy & spread the virus. My Long Read in Mint.https://t.co/PUDNp8vTmS pic.twitter.com/BJukT38JJi
— Kaushik Basu (@kaushikcbasu) September 1, 2020
India imposed a strict lockdown at the onset of the coronavirus epidemic. More than 70,000 cases are coming in India everyday. However the lockdown is almost unlocked. According to experts, ‘manufacturing, construction, trade, hotels, transport, communication sectors contribute about 45 percent of the country’s GDP and the business of all these sectors in the first quarter has been badly affected. Rating agency Icra ICRA had forecast a 25 per cent decline in GDP.
Indian economy contracted by 23.9% in Q1FY21. It was already in its worst phase even before the #coronavirus outbreak, with GDP growth falling to a 44-quarter low of 3.09 per cent in Q4FY20 pic.twitter.com/w6vJDM5Z60
— Business Today (@BT_India) August 31, 2020
China’s GDP in plus
China is the neighbouring country of India and also the place where the original coronavirus first started spreading. China’s GDP also saw a decline of 6.8 percent in the first quarter. However, China managed to boost its economy to 3.2 percent growth in GDP in the second quarter.
This was the first time since 1992 that China’s GDP had registered a decline. However, after faltering in the first quarter.
America has been hit badly by coronavirus. In the second quarter (April-June) of the year 2020, the GDP of the US has fallen by 32.9 percent. This is the largest drop in US GDP in any quarter since 1947. Prior to the coronavirus epidemic, America’s economic growth rate was the highest among the G7 countries.
UK GDP fell by 20.4 percent in the second quarter of 2020. This is the second consecutive decline in UK GDP. Due to the Corona epidemic, the service, production and construction sectors remained sluggish here.
Italy’s GDP has registered a decline of 12.4 percent in the April-June quarter. This is the biggest decline since the first quarter of 1995. The Italian government agency, which released GDP figures, said, “There has been an unexpected loss in the second quarter after a decline of 5.4 per cent in the first quarter. Covid-10’s health emergency is behind this.”
France’s GDP recorded a 13.8 per cent decline in the April-June quarter.
Canada’s GDP has fallen by 12 percent.
Germany’s GDP declined by 10.1 percent in the second quarter of this year compared to the same period last year. Ever since Germany started releasing quarterly GDP data, it has been the biggest decline since then.
Japan’s economy has also seen a record 7.8 percent decline.