Pandemic-Hit G20 Economies May Decline 4% To $66 Trillion This Year
The G20 this year is being conducted at a time when countries across the world are facing mounting economic problems and recession.
The member countries of the G20 represent about 80% of the world's GDP (estimated at $83.8 trillion), in 2020, 75% of the global population, and three-quarters of international trade. This year, the economies 19 of the G20 countries, excluding the EU, are expected to contract by about 4%, with combined GDP hitting a value of $65.8 trillion in 2020, down from $68.6 trillion a year ago, according to an IMF forecast.
China is the only country among the G20 group that is expected to achieve growth this year at 1.9%, while the IMF predicts that Argentina, Italy and India will be the most hit, contracting by 11.8%, 10.6% and 10.3%, respectively. Last year, the economies of all G20 countries achieved growth, except Mexico and Argentina, which contracted by 0.3% and 2.1%, respectively.
The U.S. has the highest GDP in the world and among the G20 group at $21.4 trillion in 2019. It is followed by China at $14.7 trillion, and then Japan, Germany, U.K. and India. The IMF expects U.S. GDP to shrink to $20.8 trillion in 2020, while China's GDP will increase to $15.2 trillion.
Turkey's economy has the highest expected inflation rates this year at 11.9%, followed by India at 4.9%, Saudi Arabia at 3.6% and Mexico at 3.4%. Inflation in Argentina touched 53.5% last year, while the IMF is yet to release its forecast for Argentina's inflation rate for this year.
Japan's economy may record a negative inflation target at 0.1%. South Africa struggles with the highest unemployment rate among G20 countries at about 37%, followed by Turkey at 14.6%, Brazil at 13.4%, Argentina at 11% and Italy at 11%. Japan and China have the lowest unemployment rates at 3.3% and 3.8%, respectively. South Africa is expected to be hit by the largest increase in unemployment this year, with an 8.3% increase compared to 2019, followed by the U.S. at 5.2%, Canada at 4%, and Indonesia at 2.7%, according to IMF estimates.