Global Economy Current Affairs - 2020

G7 summit postponed; To be expanded as G10 or G11

The US President Donald Trump recently announced that the USA is postponing the G7 summit to September 2020. Also, President Trump intends to expand the G7 group to G10 or G11.

On June 2, 2020, US  President Trump invited Indian PM Modi to the G7 summit through telephonic conversation. The Leaders discussed India-China recent Stand Off at the Line of Actual control

Highlights

The G-7 is a group of seven countries namely France, Canada, Germany, Japan, US and UK. The grouping dies not have a fixed headquarters or a formal constitution. The decision that are taken in the summit are non-binding.

President Trump intends to expand the G7 group by including three other nations namely Australia, Russia, India and South Korea.

About G7

G7 is an inter governmental organization that was formed in 1975. It was formed by the top economies of the world as an informal forum to discuss world issues. Canada joined G7 in 1976 and EU (European Union) began attending G7 meets in 1977.

Russia joined G7 in 1997. Initially G7 was called G8. In 2014, Russia was expelled as it annexed Crimea region of Ukraine to its territory.

G7 VS G20

G20 is a larger group and includes all the G7 members. India is a member of G20. G20 was formed in 1999 as a response to bring more countries to address global economic concerns. G20 makes up 80% of the global economy.

International Monetary Fund predicts India’s Growth Rate at 1.9%

Following the World that set India’s Growth rate between 1.5% and 2.8%, the International Monetary Fund has set growth rate of India at 1.9%.

On April 14, 2020, the IMF released its report predicting growth rate of the country at 5.8%.

Highlights

IMF also says that the India will recover at the growth rate of 7.4% in 2021-22. The world economy is to revive at 5.8% according to the report. The IMF has predicted that the countries such as India, China, Malaysia, Indonesia, Thailand, Philippines and Vietnam will alone see increasing growth rate.

Other countries

According to the report, the other major economies of the world are to face decreasing growth rate. US is to witness a declining growth rate of 6.1%, France at -7.2%, UK at -6.5%, Germany at -7%, Italy at -9.1%. The negative growth rates have directly projects the intensity of spread of COVID-19 virus.

Bottom line, the report says that the global economy is to revive in 2020-21.