IMF validates India’s GDP as worst in G-20

Amid a row over whether India’s gross domestic product (GDP) contracted the most among major economies in the June quarter, International Monetary Fund (IMF) chief economist Gita Gopinath on Wednesday tweeted a graph which showed India’s internationally comparable quarter-on-quarter GDP shrank the most among G-20 countries at 25.6%.

India reports its GDP growth by comparing its level a year ago (year-on-year) which showed the economy dipped 23.9% in the June quarter. Mint was the first to point out on Monday that India’s GDP contraction could be one of the worst among G-20 countries.

“In #GreatLockdown Q2 (June quarter) 2020 GDP growth at historical lows. Graph puts G20 growth numbers on a comparable scale, quarter-on-quarter non-annualized. Should expect rebounds in Q3 (September quarter) but 2020 overall will see major contractions. China recovers strongly in Q2 after collapse in Q1 (March quarter),” Gopinath said in her accompanying tweet with the graphics.