Fonte: Blue BI Solution. 1. Initial considerations
This article analyzes the main economic indicators of the Group of Twenty (G20) in 2023, offering a comprehensive view of the trends, challenges, and opportunities that have shaped the global economic landscape.
As a crucial forum for the world's leading economies, the G20 plays a fundamental role in policy formulation and coordination efforts to boost economic growth and address common challenges.
By examining the performance of each member country in terms of nominal Gross Domestic Product (GDP), growth rate, corporate tax rate, and inflation rate, we can better understand global economic dynamics and their implications for the future.
The G20 is an international forum composed of 19 member countries, along with the European Union (EU) and the African Union (AU). It was created in 1999 in response to the need for a platform that would bring together the world's most important economies to discuss global economic and financial issues.
G20 member countries represent a significant portion of the global economy, including both developed and emerging economies. The G20 is considered one of the main forums for global economic and political cooperation.
On December 15 and 16, 1999, the first meeting of finance ministers and central bank governors of G20 member countries was held in Berlin, Germany, jointly organized by Canada and Germany.
The main objective of the G20 was to create an international forum to discuss global economic and financial issues in a broader and more inclusive manner than the existing main economic group at the time, which was the Group of Seven (G7). Therefore, the G20 represented an increase in the degree of legitimacy of global governance by incorporating developing countries whose relative participation in the world economy has grown substantially in recent decades.
The first summit of G20 leaders was held on November 15, 2008, in Washington, United States, amid the global financial crisis, and since then the G20 has become the main forum for international economic cooperation, where leaders discuss a wide range of global economic, financial, and political issues.
The 19 member countries of the G20 are: South Africa, Germany, Saudi Arabia, Argentina, Australia, Brazil, Canada, China, South Korea, USA, France, India, Indonesia, Italy, Japan, Mexico, United Kingdom (UK), Russia, and Turkey.
The G20 holds annual summits, where government and state leaders gather to discuss a wide range of issues, including economic growth, international trade, financial regulation, climate change, sustainable development, and other challenges such as the COVID-19 pandemic, world hunger (735 million hungry people, according to the FAO), and global poverty (3.4 billion people living on less than $5.50 a day, according to OXFAM).
2. The main economic indicators of the G20
Regarding the economic indicators of the G20, the nominal GDP, the GDP growth rate, the corporate tax rate, and the inflation rate stand out. In addition, these four indicators provide an overview of the economic performance of the 19 member countries today and are crucial for understanding the resilience of their economy in the midst of the Fourth Industrial Revolution:
Table 1 - The main economic indicators of the G20 today
| Country | Nominal GDP in 2023 | GDP Growth Rate in 2023 | Company Tax Rate in 2023 | Inflation Rate in 2023 |
| USA | US$ 26.9 trilion | 2.5% | 21% | 3.3% |
| China | US$ 17.7 trillion | 5.2% | 25% | -0.3% |
| Germany | US$ 4.4 trillion | -0.3% | 15% | 3.9% |
| Japan | US$ 4.2 trillion | 1.9% | 30% | 2.7% |
| India | US$ 3.7 trillion | 7.3% | 34% | 5.7% |
| UK | US$ 3.3 trillion | 0.1% | 19% | 3.4% |
| France | US$ 3.0 trillion | 0.9% | 31% | 3.6% |
| Italy | US$ 2.18 trillion | 0.7% | 24% | 0.6% |
| Brazil | US$ 2.17 trillion | 2.9% | 34% | 4.6% |
| Canada | US$ 2.11 trillion | 1.5% | 15% | 3.9% |
| Russia | US$ 1.86 trillion | 3.6% | 20% | 7.7% |
| Mexico | US$ 1.81 trillion | 3.2% | 30% | 4.7% |
| South Korea | US$ 1.71 trillion | 1.4% | 27% | 3.3% |
| Australia | US$ 1.69 trillion | 2.7% | 30% | 2.7% |
| Indonesia | US$ 1.42 trillion | 5.1% | 22% | 2.6% |
| Turkey | US$ 1.15 trillion | 4.5% | 25% | 64.8% |
| Saudi Arabia | US$ 1.07 trillion | -0.9% | 20% | 1.6% |
| Argentina | US$ 0.621 trillion | 2.8% | 30% | 211.4% |
| South Africa | US$ 0.400 trillion | 1.2% | 27% | 5.5% |
Sources: AUSTIN RATING and OECD.
In table 1, we clearly see that the USA has the largest nominal GDP of the G20, with US$ 26.9 trillion in 2023. Following are China (US$ 17.7 trillion) and Germany (US$ 4.4 trillion), according to Austin Rating. Among the G20, the least wealthy is South Africa, with only US$ 400 billion.
The GDP growth rate varied from country to country, reflecting different economic and political dynamics. The highest economic growth rate was in India, at 7.3% in 2023. Meanwhile, the worst economic contraction occurred in Saudi Arabia, with a 0.9% decline in 2023, according to the Organization for Economic Cooperation and Development (OECD).
Table 1 presents the corporate tax rate in G20 member countries, which is a relevant indicator for understanding tax policies and their impact on the business environment of these countries. Brazil has the highest rate in the G20, at 34%, and the lowest at 15% are tied between Germany and Canada, according to the OECD.
The inflation rate also varied, reflecting different dynamics in each G20 country, according to Austin Rating. Argentina led the G20 ranking in inflation rate, with an annual rate of 211.4% in 2023. Brazil, on the other hand, had the seventh-highest inflation rate in the G20 in 2023, at an annual rate of 4.6%. Meanwhile, the lowest inflation rate in the G20 was in China, with deflation of -0.3% in 2023.
3. Brazil and the G20 agenda in 2024
Succeeding India in 2023, Brazil assumes the Presidency of the G20 for the year 2024, indicating three major priorities: combating global warming and promoting sustainable development; social inclusion and combating hunger and poverty; reform of global institutions.
As it is a forum with a non-institutional nature, the permanent functioning of the G20 substantially depends on the country that holds the rotating presidency for one year.
As the country presiding over the G20 in 2024, Brazil will host the XIX Leaders' Summit in November, in Rio de Janeiro, and hosted, in February, the meeting of Foreign and Finance Ministers of the member countries in Rio de Janeiro and São Paulo, to discuss urgent issues for the future of global governance and seek solutions to conflicts.
However, the ministerial meeting did not produce any final statement, which is attributed to the degree of dissent among members on various issues, especially those related to armed conflicts in Europe and the Middle East, as well as the taxation of large fortunes.
At the end of the event's press conference, Finance Minister Fernando Haddad said that "the conflicts that are ongoing" were responsible for the deadlock. He also said that it was not possible to reach "even a brief note on a topic, so that we could release the [final] statement."
It is important to highlight that the G20 is a forum composed of countries with different political, cultural, and economic systems, which does not always facilitate consensus.
The discussions and decisions taken within the G20 can have a significant impact on economic and social policies worldwide, given the influence of the 19 member countries, the EU, and the AU. However, its importance as a platform for international cooperation continues to grow in an increasingly interconnected and interdependent world.
4. Final considerations
In summary, the G20 represents 85% of the world's GDP, 65% of the global population, 75% of international trade, and 79% of the planet's carbon dioxide (CO2) emissions. It plays a crucial role in coordinating global economic policies and addressing common challenges faced at each summit.
It is important to note that the economic indicators of the G20 in 2023 reflect a diversity of performances and challenges. While some economies maintain solid growth, others face obstacles such as high inflation and fiscal instability.
In conclusion, international cooperation and prudent economic policies are essential to promote robust, inclusive, and sustainable growth worldwide.
(*) Brazilian economist, graduated from UFPB (1998), specialist in HR Management from UNINTER (2009), Economics professor at UNIESP, effective advisor of CORECON-PB, effective member of the Celso Furtado Forum for the Development of Paraíba, author of 12 Economics e-books by Editora UNIESP, author and co-author of hundreds of Economics articles.
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(**) Specialist in Economics and International Affairs, Graduated with academic merit from the Faculty of Economics of Armando Álvares Penteado University (FAAP-SP) in 2014. Postgraduate in Statistics from the Pontifical Catholic University (PUC-Chile). Editorial Consultant at Ciência Capital. International Columnist at Rádio Alta Potência. International Columnist at Rádio Agro Hoje. CEO of Business Intelligence at BlueBI Solution in São Paulo. Instagram: @bluebisolution.
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(***) Brazilian economist, graduated from Mackenzie University (1977), Master in Creativity and Innovation from Fernando Pessoa University (Portugal, 2012). Managing partner of the company SAM - Souza Aranha Machado Consultoria e Produções Artísticas and advisor to the Democratic Space Foundation. Author and co-author of hundreds of articles in the areas of Economics and Creativity and of the books Journey through Economics (2019) and Economics + Creativity = Creative Economy (2022), both published by Scriptum Editorial.
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