India to have fastest growth in G20 in FY’20: EIU

The Economist Intelligence Unit (EIU) in its post-Covid-19-outbreak revised growth forecast for G20 countries in 2020 said that though the Indian economy is likely to be battered by the Coronavirus pandemic this year, it is still likely to be better off than all other G20 countries. This is despite the fact that EIU downgraded projected FY21 GDP growth of India to 2.1%  from 6% before the outbreak. The think thank projected China and Indonesia’s growth at 1% in 2020.

 “The global economic picture is looking bleak, with recessions in almost every developed economy across the world. We assume that there will be a recovery in the second half of the year, but downside risks to this baseline scenario are extremely high, as the emergence of second, or third waves of the epidemic would sink growth further,” said Agathe Demarais, Global Forecasting Director, EIU stated.

Some of the nations which will experience worst contractions in this conglomeration are Italy (-7%), Germany (-6.8%) and Argentina (-6.7%) followed by Brazil (-5.5%), Mexico (-5.4 %), France (-5%), Saudi Arabia (-5%), and UK (-5%). The economy of USA, too, will contract to -2.2% in 2020.