Even the strongest economies in the world took a hit during 2020. The GDP fell by almost $3 trillion from 2019 to 2020. That said, the GDP was still $3 trillion higher than in 2017, ending 2020 at $84.705 trillion. The world economy ranking top countries in 2019 were the USA, China, Japan, Germany, and India.
Is the story of how 2020 panned out the same for all five? Hardly. Keep reading to see what the global economic effects of COVID-19 were for the world economy in 2020.
1. United States
Among the strongest economies in the world, the United States is also the largest economy in the world, with a 24.41% share of the global economy. Much of this is in part due to the accessibility of the stock market exchanges throughout the world. There is an abundance of services like monexsecurities.com.au that allows you access, even without a broker or brokerage firm.
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Its place as the world’s largest and most powerful economy helped it weather the pandemic, despite two major stimulus checks and election debacles.
China comes in at number two, from 2019s strongest economies, weathering the 2020 pandemic quite well — all things considered. China had a quick response that many called “draconian,” but it stemmed the loss of life dramatically. By April, these measures were
The third most-powerful economy, Japan, has long been known for quick recoveries after adversity. This includes invasions, regime changes, cultural purgest, and a traumatic loss to world war two.
How did it fare during the COVID-19 pandemic? The economy of Japan shrank by 4.8% of the year, the first time there was a contraction in a decade. However, beat expectations with a decisive plan of action against the pandemic.
Representing mainland Europe is Germany. It’s been facing economic problems as it was, trying to spearhead green initiatives for its electric grid. Unfortunately, they’ve been buying electricity at a premium from neighbors, including nearby nuclear-powered France.
Germany also contracted by 4.9% during 2020. Continuous lockdowns, partially due to the population not wanting to follow guidelines, took a serious toll on the German economy.
This is not unlike the issues in the USA, with Germany continuing to report tens of thousands of new cases per day into late 2021.
It’s only doing 0.2% better than projected for the end of 2020. That said, it’s not expected to recover completely until well into this decade.
India was hit hard with heavily enforced mandatory lockdowns throughout the year. A mass infection event following a major religious festival caused the impact of these infections to further cripple its economy domestically and abroad.
The pluses for India are that there are hopes for a GDP rebound by the end of 2021. However, demand is weak and employment is not looking good. The light at the end of the tunnel is the expectation that India’s GDP could grow by 10% during 2022, carrying on from an increase during the closing quarter of 2021.
How the Top 5 Strongest Economies in the World Are Coping Post-Pandemic
Even the strongest economies in the world are not immune to adversity. In fact, you could argue they have the most to lose.
The question is: if these five are suffering as they have been, what’s happening to the rest of the world? As the top five economies are shrinking by single-digit percentages or standing still, some of the world’s weakest economies are contracting by double-digits — or worse, on the verge of collapse.
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