GDP figures for the second quarter of 2020 are slowly rolling in and the impact the coronavirus has had on economies around the world is fairly catastrophic.
First published in August 2020.
The coronavirus has had a fairly catastrophic impact on economies around the world. The United States was the latest to announce its Q2 results, which had the country’s economy contract by a non-annualized 9.5% (32.9% annualized). Yet, the dismal result is not the worst out there when comparing with other countries’ GDP figures.
Germany announced a non-annualized GDP growth of -10.1% compared to Q1 of 2020, when GDP fell by 2%. Italy and France, hit even harder by the pandemic in the months between April and June 2020, saw even steeper GDP contractions, as did Canada.
China saw its economy contract by 6.8% between January and March (counted as -9.8% in official OECD figures). The figure was the biggest Q1 loss listed by the OECD in 2020. But the country’s economy bounced right back in Q2 – the first quarter its outbreak was under control – giving some hope to embattled European economies for the third quarter of the year. In the U.S., where the outbreak has been ongoing, Q3 figures might not bring relief.
South Korea, which was able to keep its economy mostly open despite coronavirus outbreaks occassionally flaring up in the country, announced a GDP contraction of 3.3% in Q2, after GDP had fallen by 1.4% in Q1.