Indian economy sees worst contraction among G20 nations during Q1: IMF chief economist Gita Gopinath


China is on the recovery path in a strong manner during the second quarter after decline in Q1

The IMF says that Indian economy witnessed the worst contraction among the G20 nations in the first quarter of this financial year.

In a tweet by the International Monetary Fund’s (IMF) chief economist Gita Gopinath said that the Indian economy experienced the steepest contraction in June quarter among G20 countries. She said that China is on the recovery path in a strong manner during the second quarter after decline in Q1.

“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,” Gopinath tweeted.

In a graph shared on Twitter, the IMF chief economist pointed out that all countries except China registered Gross Domestic Product (GDP) contraction in June quarter.

While China's economy is shown to have grown by a whopping 12.3 percent over the March quarter on a non-annualised basis, the UK is the most affected after India, with a GDP contraction of 20.4 percent.

Last month, the country’s first quarter GDP growth slipped a sharp 23.9 percent due to the strict nationwide lockdown in the wake of COVID-19 outbreak, according to provisional estimates released by Ministry of Statistics and Programme Implementation (MoSPI).

The GDP had expanded by 5.2 percent in the corresponding quarter the previous fiscal.

The Q1 GDP data showed that it was the worst fall in the history of the Indian economy mainly because the Centre on March 25 had ordered a complete lockdown of most of the manufacturing and service sectors due to COVID-19 outbreak. Only essential services such as food items and medicines were allowed during this period.

Infograph: Twitter

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