THE Gross Domestic Product (GDP) of the G20 area returned to pre-pandemic level in the first quarter of 2021, growing by 0.8 per cent, but with major differences between countries, said the Organisation for Economic Cooperation and Development (OECD).

Year-on-year GDP growth of the G20 area rebounded to 3.4 per cent in the first quarter of 2021, following a contraction of 0.7 per cent in the previous quarter.

Among G20 economies, China, which was affected by COVID-19 at an earlier stage than other countries, recorded the highest annual growth of 18.3 per cent, while the United Kingdom recorded the largest annual fall as its economy shrank by 6.1 per cent.

Among the G20 economies, India, Turkey and China, whose GDP was already above pre-pandemic levels in the previous quarter, continued their recovery. India grew 2.1 per cent in Q1 compared to 9.3 per cent in the previous quarter, while Turkey’s growth remained constant at 1.7 per cent.

China, the world’s second-largest economy, expanded 0.6 per cent, slowing down from the 2.6 per cent growth in the previous quarter.

GDP in Australia, Korea and Brazil also returned to pre-pandemic levels, growing by 1.8 per cent, 1.7 per cent and 1.2 per cent, respectively. The GDP is still lagging behind pre-pandemic levels in the remaining G20 economies, with countries recording diverging developments in the first quarter of 2021.

While GDP growth accelerated in the US to 1.6 per cent and Italy to 0.1 per cent, it slowed in Indonesia (to 1.6 per cent), Canada (to 1.4 per cent), South Africa (to 1.1 per cent) and Mexico (to 0.8 per cent).

Growth even turned negative as the German economy contracted by 1.8 per cent, the UK by 1.5 per cent, Japan by 1 per cent and Saudi Arabia by 0.1 per cent.

In France, GDP continued to contract for the second consecutive quarter, although at a slower pace of 0.1 per cent, after contracting minus 1.5 per cent.

Overall, the UK and Italy recorded the largest gaps to pre-pandemic GDP levels, at minus 8.7 per cent and minus 6.4 per cent, respectively. However, Germany, France, the Euro Area and the European Union still recorded gaps of more than 4 per cent.