G20 recession in Q1 2020 worse than at the height of the 2008-2009 crisis

Together, the G20 members represent around 90% of global GDP, 80% of global trade and two-thirds of the world’s population, as well as some 60% of all agricultural land and about 80% of world trade in agricultural products.

Real GDP in the G20 area fell by 3.4% in Q1 2020, the largest contraction since the time series started in 1998. Recession was "only" 1.5% even at the height of the financial crisis in the first quarter of 2009.

Restrictive measures implemented to contain the spread of coronavirus affected started to make an impact on several economies only in the second quarter of the year, as the pandemic broke out later there, which means that GDP contraction in April-June could be even sharper. 

Among G20 economies, those that introduced stringent lockdowns measures earliest saw the largest contractions in GDP in the first quarter of 2020: China (by -9.8%), and France and Italy (-5.3%, in both countries).

Growth in the European Union dipped by 3.2% and euro area GDP contracted by 3.6%.

GDP also fell sharply in Germany (-2.2%), Canada (-2.1%) and the United Kingdom (-2.0%).

GDP also contracted in Brazil (-1.5%), the United States and Korea (-1.3%, in both countries) and Mexico (-1.2%).

The contraction was less pronounced in Indonesia (-0.7%), Japan (-0.6%) and Australia (-0.3%). 

India (0.7%) and Turkey (0.6%) were the only two G20 economies recording positive growth in the first quarter of 2020.

Year-on-year GDP in the G20 area contracted by (-1.5%) in the first quarter of 2020, following growth of 2.8% in the previous quarter. Among G20 economies, Turkey recorded the highest annual growth (4.4%), while China recorded the largest annual contraction (-6.8%).

OECD total (37 member states) GDP fell 1.8% q/q and 0.8% yr/yr in January-March. 

Cover photo: Getty Images