The group of 20 economies recorded a return on gross domestic productreached pre-pandemic levels in the first quarter of 2021, although large differences between nations are becoming apparent.
The G-20 area’s GDP rose 0.8% in the first quarter compared to the fourth quarter of 2020, according to the latest data from the Organization for Economic Co-operation and Development released on Thursday.
Year-over-year GDP growth of the G-20 rebounded to 3.4% in the first quarter of 2021 after shrinking 0.7% in the previous quarter.
China, where the coronavirus pandemic broke out, saw the highest annual growth (18.3%) while the UK saw the largest annual decline (minus 6.1%).
Europe fared particularly badly in the first quarter, a time when, unlike other countries, a third wave of Covid infections hit the region.
India, Turkey and China (whose GDP in the previous quarter was already above pre-pandemic levels) continued to recover in the first quarter of 2021, gaining 2.1%, 1.7% and 0.6% respectively.
In addition, Australia, South Korea and Brazil saw growth in the first quarter to match pre-pandemic levels.
GDP still lags behind for some
However, GDP in the remaining G-20 economies is still below pre-pandemic levels, with countries seeing terrifying divergences in the first quarter.
While GDP growth accelerated in the US (to 1.6% from 1.1% in the fourth quarter of 2020) and Italy, growth slowed in Indonesia, Canada, South Africa and Mexico.
In Germany (-1.8%, after 0.5% growth in the fourth quarter), Great Britain (-1.5%, after 1.3% growth), Japan and Saudi Arabia, growth was even negative, while in France the GDP contract quarter shrank for the second time in a row, albeit more slowly (-0.1%, after -1.5%).
Overall, the UK and Italy recorded the largest differences from pre-pandemic GDP levels at -8.7% and -6.4%, respectively. However, Germany, France, the euro zone and the European Union still had gaps of more than 4%.