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Understanding GDP Slump – Part 2 of 3 | Summachar

Here&rsquo;s how some countries fared in the Apr-Jun 2020 quarter after COVID-19 brought the world to its knees.
 India&rsquo;s GDP contracted by 23.9% compared to Apr-Jun 2019. In comparison to Jan-Mar 2020, the GDP contracted by 29.3%.&nbsp;
 Notably China registered a positive growth. But it is to be noted that China faced the worst of the pandemic in Jan-Mar 2020 and started recovering in Apr-Jun 2020.&nbsp; &nbsp; A more meaningful comparison would be to compare GDP trends during quarters that respective countries were worst affected by COVID&nbsp; Interestingly, China&rsquo;s 27%&nbsp;QoQ&nbsp;slump in Jan-Mar 2020 translates to 7% YoY slump.&nbsp; &nbsp; Historically China sees a&nbsp;QoQ&nbsp;GDP slump of 16-17% every year during Jan-Mar. &nbsp; The Chinese New Year holidays in this quarter lead to massive reduction of industrial output for almost a month - almost like an annual lockdown.&nbsp; &nbsp; If we look at absolute GDP figures in dollars, China saw a slump of almost a trillion dollars in Jan-Mar compared to previous quarter&nbsp; India saw a shrinkage of 152 billion dollars in the Apr-Jun&nbsp;quarter &nbsp; In the last part of this series we will have a look at GDP trends in India over the last decade and possible recovery from the COVID blues.

part 2

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