According to the global market research company Euromonitor International, the global GDP growth is expected to reach 5.1% in 2021 with developing and advanced economies hitting 6.1% and 3.8%respectively. Euromonitor Global Recovery Tracker suggests that China and India will be leading the top ten largest economies to recover.
China and India are expected to lead the Global Economy Recovery
Currently, India is leading the world's economic growth with a GDP that is predetermined to reach 9% in 2021. This is as a result of the strong performance led by a 12.5% increase in private consumption. China follows closely with a forecast of 7.5% for 2021. The country's industrial and services sectors have already made tremendous recoveries by October 2020. China's recovery signals an acceleration as it's private and consumer sectors are following the pace.
Britain and Brazil expected to take the fall as leading countries with the slowest recovery rates
In sharp contrast to India and China, Britain and Brazil are predicted by Euromonitor to take the longest to recover. In Britain, the standoff between Brexit and the economic impact of COVID-19 builds up underlying uncertainty about the future. According to Giedrius Stalenis, an economist at the Euromonitor International States, unsuccessful Brexit negotiations would stagnate the economy growth for the UK. But if companies prepare better for a No-Deal Brexit, the UK could grow to around 4% by 2021.
On the other hand in Brazil, the energy and transportation sectors are still not up to par with their performance. The manufacturing and production sectors are still exhibiting symptoms of partial economic recovery which light forecast a GDP growth of 3.2% in 2021 which is one of the lowest in the world. Also, the continual increase in the advanced aged population within the country does not help the consistently slower recovery rate. The increase in the population of senior citizens is also evident in countries like Japan, Italy, and France. This promises to be an economic growth slowing contributing factor.
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