Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

Coronavirus Slump Eases in Q4

This is a syndicated repost courtesy of Statista | Infographics. To view original, click here. Reposted with permission.

GDP figures by the OECD for the fourth quarter of 2020 show the ongoing impact the coronavirus is having on economies around the world.

China was the first economy that bounced back from its coronavirus losses, recording a year-over-year growth of 6.5 percent in Q4 of 2020 after having already grown by 4.9 percent in the third and by 3.2 percent in the second quarter. That means that China only recorded one quarter of negative growth due to the pandemic.

In Q4, Turkey and India joined China as countries whose quarterly GDP was growing again in year-over-year terms. In the case of India, the growth was minimal, but showed that the country’s GDP at least returned to pre-COVID levels.

Other countries can only dream of this scenario: Most European economies are experienced their fourth consecutive quarter of GDP losses in Q4, with the UK, Italy, and France being the most affected. Second-wave lockdowns which are still in place across the European continent mean that there will likely be no let-up in early 2021 either.

The U.S., which reopened its economy despite an ongoing outbreak, saw Q4 GDP growth 2.5 percent below last year’s levels despite a quarter-on-quarter bounce back. Korea and Australia experienced losses of only around one percent compared with last year, signalling at the countries’ ability to keep infection numbers in check more effectively than others. Japan also recorded a one percent loss in Q4, but this number is deceiving. The Japanese economy had already recorded a quarter of losses in Q4 of 2019, before the coronavirus crisis even started. This means that Japanese GDP remains seriously repressed.

This chart shows 2020 Q4 GDP growth and forecasts in selected countries.

quarterly GDP growth predicted growth selected industrialized nations OECD

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.