Sitemap

Here Are The 10 Biggest Economies In The World — Before The Pandemic vs. Now

More...

Enlargement Package 2021 Adopted By The European Commission

Today, the European Commission adopted its 2021...

Serbia To Hold 5G Spectrum Auction In First Half Of 2022

AmCham and Ministry of Trade, Tourism and...

Belgrade Security Forum Under The Motto “Testing Humanity”

The Belgrade Security Forum, the most important...

PPF Group To Sell A CETIN Group Stake To GIC

PPF Group and GIC have agreed that...

Enlargement Package 2021 Adopted By The European Commission

Today, the European Commission adopted its 2021 Enlargement Package, providing a detailed assessment of the state of play and...

Serbia To Hold 5G Spectrum Auction In First Half Of 2022

AmCham and Ministry of Trade, Tourism and Telecommunications work together to tackle illicit trade online The 5G network and associated...

Belgrade Security Forum Under The Motto “Testing Humanity”

The Belgrade Security Forum, the most important international foreign policy and security conference in the region, will take place...

Russia Suspends Its Mission To NATO

The Kremlin is also closing the alliance's liaison mission in Moscow. The announcement comes after NATO expelled eight members...

Serbian Government, Oracle Sign Memorandum Of Understanding

At the pavilion of the Republic of Serbia, at this year's World EXPO 2020 held in Dubai, a Memorandum...

The Covid-19 pandemic has shaken up the ranking of the world’s largest economies after sending many countries into their worst economic recessions in recent history.

The United States, China, Japan and Germany still take the top four spots as the world’s largest economies — but some rankings have shifted as a result of the pandemic while one country fell off the top 10 list, according to CNBC analysis of the International Monetary Fund’s economic forecasts.

CNBC compared nominal gross domestic product in U.S. dollars across countries provided in the IMF’s World Economic Outlook database.

Nominal GDP estimates the market value of all finished goods and services produced in an economy but doesn’t strip out changes in price levels, or inflation — and can therefore overstate or understate the real economic value.

Still, nominal GDP values denominated in a common currency are a way of measuring and comparing economic sizes of different countries, and provide a glimpse of how developments — such as the pandemic — affect economies differently.

Here are the major changes in the ranking of the world’s 10 largest economies before and after the Covid outbreak.

India falls behind the U.K.

India, which became the world’s fifth largest economy in 2019, slipped to sixth place behind the U.K. last year.

The South Asian country would not regain fifth place in the global economic ranking until 2023, according to CNBC analysis of IMF data.    

India was hit by strict lockdowns last year as the country struggled to contain the coronavirus. Its economy was projected by the IMF to contract 8% in the fiscal year that ended in March 2021.

While the fund expects India to grow 12.5% in the current fiscal year which ends March 2022, some economists have warned that the latest surge in Covid cases could dampen the country’s prospects. India last week overtook Brazil to becomethe second worst-infected country globally, behind only the U.S.

“We grow even more concerned that rising Covid 19 cases pose a risk to our still shallow recovery,” Bank of America economists wrote in a Monday report.   

The economists estimated that one month of nationwide lockdown — if imposed again — would shave 100-200 basis points off India’s annual GDP.   

Consumption has also become increasingly resilient to virus outbreaks, thanks in part to a rise in online shopping. However, hospitality and recreation remain very weak.

Brazil drops out of top 10

Brazil went from the ninth largest economy in 2019 to the 12th largest last year, becoming the only country that fell out of the top 10 ranking.

The South American country would stay out of the world’s 10 largest economies until at least 2026 — the furthest IMF projection available, CNBC analysis showed.

Brazil has reported the third highest Covid caseload and second largest death toll globally. But President Jair Bolsonaro — who has downplayed the virus threat — has repeatedly refused to impose a national lockdown to contain the coronavirus.

Sao Paulo’s health secretary reportedly wrote to the federal government warning of an “imminent” collapse in the state’s health-care system; while economists said the Brazilian economy would struggle to recover.  

The economy contracted 4.1% last year and is forecast to grow 3.7% in 2021, according to the IMF.

South Korea enters top 10

With Brazil dropping out of the 10 largest economies in the world, South Korea moved up to 10th place and is expected to remain there until at least 2026, CNBC analysis showed. IMF’s data projection was only available until 2026.

South Korea was one of the earliest countries outside China to report cases of Covid-19 in early 2020. The country had some success in containing the virus last year that — along with strong semiconductor exports — helped its economy to contract by a modest 1% in 2020.

Source: cnbc.com

Related Articles

Cooperation Between Serbia, Germany In Field Of Climate Action

Prime Minister Ana Brnabic attended today the signing of the Joint Declaration of Intent regarding strategic cooperation in the field of climate action between...

Comment

Post-Merkel Cooperation

Some of the topics that top the bilateral agenda include strategic cooperation in the field of climate change, as well as in the field...

H.E. Thomas Schieb, Ambassador Of Germany To Serbia

Continuity Is A German Trademark

There is no doubt that the Western Balkans and EU enlargement will remain high on Germany’s agenda. Whoever becomes the next Chancellor will certainly...

Udo Eichlinger, President Of The German-Serbian Chamber Of Commerce

Cooperation Growing Wide And Deep

There are great opportunities for cooperation between German and Serbian companies, and both sides are ready to use those opportunities. German companies that currently...

Frank Aletter, Managing Director AHK Serbia

Growing Opportunities For Collaboration

Serbian companies are very well positioned to attract the interest of German investors seeking to diversify their supply chains or find alternative sourcing destinations....

Milomir Gligorijević, CEO Of Telegroup System

Knowledge Leaps Borders

TeleGroup system is one of the leading technology companies in the field of information and communication technologies, the modernisation of the electricity industry, technical...

Roman Strakoš, Managing Director, Brose Serbia

Ready For The Next Step In Serbia

Brose is the world’s fourth-largest family-owned automotive supplier. In 2021, the company’s new site in Pančevo started its operations - and the next development...

ZF Serbia

How The Vision Became Reality

The story of ZF Serbia began in 2018, when the foundations of this important greenfield site of ZF’s youngest and innovation-driving E mobility division...