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On Economic Growth in the G20 Countries in 2022, Adjusted for the Catch-Up Effect

The COVID-19 pandemic and especially the Russian war in Ukraine and the economic sanctions imposed by the West against Russia have significantly affected the economic growth in many countries of the world. Of particular interest is economic growth in the 19 G20 countries (with the exception of the EU which is not a country). When comparing economic growth in different countries, it is necessary to take into account the so-called “catch-up effect” when, due to diminishing returns on capital, with ceritas paribas, it is easier to achieve higher economic growth rates in countries with a relatively low economic level of development than in countries with more developed economies. After excluding the “catch-up effect,” India is not at all in the leading position among the G20 countries in terms of adjusted economic growth. On the contrary, India’s adjusted economic growth rate in 2022 will be only 0.8 percent and it will be in the lagging group of countries with an adjusted economic growth rate of less than 1 percent. This group, along with India, includes China (0.9 percent), Mexico (0.7 percent), South Africa (0.5 percent) and Brazil (0.4 percent).