India, China, Indonesia's economic position in G-20 countries is strong

Mumbai, Ta. Wednesday, August 26, 2020

Among the emerging G20 nations, India, China and Indonesia are the only three countries that will be able to achieve strong enough economic growth in the last six months of 2020, Moody's Investors Services said. Moody's has maintained its projection that India's economic growth will be negative at 7.10 per cent in the current year.

The economic outlook of emerging countries is more challenging than that of developed countries. India, China and Indonesia are the only three G20 countries whose economic growth rates will remain strong in the last six months of 2020 and full-year GDP for 2021 will be at pre-coronavirus levels, Moody's said in a report.

The rating agency has projected India's economic growth to be 7.50% in 2021. In FY2017, India's economic growth was at an 11-year low of 7.50%. The economic recovery has begun, but its survival depends on how quickly Corona recovers.

Consumption of goods is witnessing a rapid increase in many developed countries of the world though full recovery is being hampered due to fears of corona. The report also notes that the G20 will see a 2.50 per cent decline in GDP in 2020, while it will see a 6.50 per cent growth in 2021.

With the exception of China, every G20 country is expected to see a decline in economic activity this year.

Disputes over trade, technology and foreign policy between China and its trading partners such as the United States, India, Canada, the UK, etc. have escalated with the onset of the epidemic. Efforts by various countries to increase domestic production capacity indicate that they want to reduce their dependence on the global economy.