Gross domestic product (GDP) of the G20 area grew by 0.4 per cent in the second quarter of 2021, down from 0.9 per cent in the first quarter of 2021.

However, this figure conceals large differences in the growth observed across countries. Among the G20 economies, GDP growth slowed in Turkey to 0.9 per cent from 2.2 per cent; Korea to 0.8 per cent from 1.7 per cent and Australia to 0.7 per cent from 1.9 per cent.

GDP contracted sharply in India by minus 10.2 per cent, after a 2.3 per cent growth. GDP also contracted to a lesser extent in Canada by minus 0.3 per cent coming from a 1.4 per cent growth and Brazil by minus 0.1 per cent, after 1.2 per cent growth.

GDP growth resumed in the United Kingdom, rising to 4.8 per cent following a contraction of 1.6 per cent. In the European Union as a whole, the growth was 2.1 per cent, following a contraction of 0.1 per cent and Germany was up 1.6 per cent, following a contraction of minus 2.0 per cent.

GDP EXCEEDS PRE-PANDEMIC LEVELS

Saudi Arabia was up 1.1 per cent, following a contraction of 0.5 per cent and Japan grew 0.5 per cent, following a contraction of 1.1 per cent. The remaining G20 economies recorded accelerating growth rates in the second quarter of 202.

Italy was up 2.7 per cent from 0.2 per cent; the United States, up 1.6 per cent from 1.5 per cent; Mexico up 1.5 per cent from 1.1 per cent; China and Indonesia both grew by 1.3 per cent from 0.4 per cent and 0.3 per cent, respectively. France grew 1.1 per cent from 0.0 per cent. 

In the second quarter of 2021, GDP for the G20 area as a whole exceeded its pre-pandemic level (Q4-2019) by 0.7 per cent, driven by China, which together with Turkey, recorded the highest recovery rates 8.2 per cent and 8.8 per cent, respectively.

However, the majority of countries are still lagging behind pre-pandemic levels, with India experiencing the largest gap (minus 8.1 per cent), followed by the United Kingdom (minus 4.4 per cent) and Italy (minus 3.8 per cent).