The G-20`s "least-resilient" nations are set to face far worse economic consequences than wealthier ones in the aftermath of the pandemic. According to a report by global political risk consultancy Verisk Maplecroft, India, South Africa, and Brazil will experience the "harshest repercussions" as they attempt to recuperate economic losses this year.
The report said G-20 countries in Western Europe and East Asia have the capacity to recover more rapidly than emerging market members. More affluent countries adopted strict lockdowns and managed to support citizens when their economies entered a "self-induced coma," the report found, while poorer G-20 members could not launch such widespread programmes.
The index measures a nation`s ability to recover from a crisis. India, South Africa and Brazil lie at the very bottom of this index. The three economies contribute to 20% of the world`s population, 10% of the world`s GDP, 3.7% of total trade, and 3.2% of foreign direct investment flows.
In its latest world economic outlook, the International Monetary Fund predicted that emerging market economies will shrink by 3.2% in 2020 — the the largest decline for this group on record. Maplecroft`s measure for corruption scores India, Brazil, and South Africa as high-risk while Russia, Mexico, and Indonesia fall under the "extreme" risk category.