Australia bounces out of recession - growth of 3.3%

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India stares at 5th recession: How is it different from the past downturns?

Not all countries are spinning down the path of recession because of Covid. 

Of course, we know that China has long come out of the issue and has registered a growth in the second quarter onwards. Expected to grow at an annual growth rate of 2.1% this year, hitting a 44 year low in their growth rate!

Australia registered a growth of 3.3% in the last quarter. It fell into a recession, pushed in by the Corona Virus, after nearly three decades! Found itself controlling the virus and jumping out of the recession quickly. People expect Australia to further move ahead and mark the year end with a sharp growth in its economy.

World's third largest economy, read Japan, has also moved out of the recession in the last quarter of this year. Japan is leading the 'Zoom Boom' with an impressive 5.5% growth in the third quarter. Japan has just signed off world's biggest trade deal, Regional Comprehensive Economic Partnership (RCEP)! Only the previous quarter, Japan had its economy shrink by 8%.

United Kingdom on the other hand continued to be in recession and announced that it would continue to do so till next spring. Bank of England pumped in PDS 150 billion into the market to counter the double dip recession that the UK is facing. One from the Corona virus and the other from the Brexit.

German GDP grew by an impressive 8.5% in the third quarter of 2020 after a steep fall in the previous two quarters. Exports increased by 18.1% while the growth was at least 4% lower than the equivalent period in 2019. 

Most of the countries are bouncing back or have already bounced back. It is worth to take stock of the situation in India. 

India in the third quarter of 2020, July to September, economy showed a recovery of the falling rate to  -7.2% compared to the previous quarter when the fall was -23.9%! India hit the largest recession since independence. 

While Japan and Germany saw an export growth of 31.3% and 18.1% in the third quarter of 2020, India also saw a nominal growth in its exports by about 4% in September. This stopped the fall in exports by over 19% in the previous quarter.

Finance Minister Nirmala Sitharaman made a dramatic statement at the Rajya Sabha on November 27: If you are looking at the economy with a discerning view, you see that growth may have come down but it is not a recession yet, it will not be a recession ever!

We wish we never had a recession! But are we heading for a depression?

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