Due to the Covid-19 pandemic, there is a major global economic crisis on the way and these negative growth rates are the vital indications of it. Almost, every giant economy is facing a huge drop in their GDP and this is a reason that they eagerly want to open their market as soon as possible even when the number of cases is still surging up.
India has witnessed a 23.9% negative growth rate which is the highest among recent decades.
Recently, showing concerns over this negative growth rate, International Monetary Fund chief economist Gita Gopinath has confirmed that the Indian economy has seen the steepest contraction among G20 countries in the month of June.
The information was confirmed via a tweet by Gita which read, " 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."
Also Read: Fall in GDP growth rate: Indian economy is waiting for appropriate policiesIn sharp contrast to it, only China has not observed the contraction in the Gross Domestic Product (GDP). Reportedly, China's economy has expanded by 12.3 percent over the March quarter on a non-annualized basis.
However, the UK comes after India in the contraction of GDP at 20.4 percent.
The economy of the US has reportedly contracted by 9.1 percent on a quarterly basis.