Global market research company Euromonitor International through its research on the economic recovery, informed that the global Real GDP growth will reach 5.1% in 2021 with developing and advanced economies at 6.1% and 3.8% respectively.
Euromonitor’s Global Recovery Tracker’s findings suggest that amongst the top ten largest economies, China and India will recover the fastest, while the UK and Brazil will take the longest.
India is leading the world’s economic recovery with a GDP growth set to reach 9% in 2021- a strong performance led by a 12.5% forecast increase in private consumption during the festive season at the end of this year.
Securing the second place, China’s GDP growth is forecast at 7.5% for 2021. With the country’s industrial and services sectors having already recovered by October 2020, its private and consumer sectors are following suit, signalling an acceleration in recovery.
While in the UK, the situation between COVID-19 and Brexit has led to an uncertainty about the future and the economy.
“Unsuccessful Brexit negotiations would stagnate economic growth for the UK. However, if companies prepare better for a No-Deal Brexit, the UK economy could grow around 4% by 2021.”~Giedrius Stalenis, Economist at Euromonitor International states
In Brazil, while the energy and transportation sectors are still underperforming, the manufacturing and production sectors are showing signs of partial economic recovery, forecasting a 3.2% GDP growth in 2021, one of the lowest in the world.
The increase in an ageing population is another contributing factor to a comparatively slower recovery rate in advanced economies, such as Japan, Italy and France.