The leaders of the Group of 20, or G20, of the world's most powerful countries are meeting in London with the global economic crisis topping the age

Page last updated at 07:49 GMT, Thursday, 2 April 2009 08:49 UK
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G20: Economic snapshot

The leaders of the Group of 20, or G20, of the world's most powerful countries are meeting in London with the global economic crisis topping the agenda.

G20 countries
G20 members G7 members Show country names
Map of the world highlighting the G20 nations Map of the world showing G7 nations
Click on the links below to find out more about the effects of the recession on each member state and how governments are trying to tackle their problems.

Argentina
Australia
Brazil
Canada
China
France
Germany
India
Indonesia
Italy

Japan
Mexico
Russia
Saudi Arabia
South Africa
South Korea
Turkey
United Kingdom
United States
European Union

ARGENTINA

One of South America's largest economies, Argentina was in economic difficulties even before the global downturn struck.


LATEST NEWS
Cristina Fernandez

Argentine farmers protest
Argentine pension takeover passed

Expansionary policies had caused the economy to overheat, fuelling inflation, while tax revenues shrank because the country's farm exports were fetching lower prices on world markets.

The government responded to the fall in tax revenues by increasing taxation on agricultural exports, a move that sparked continuing protests by farmers.

President Cristina Fernandez, who came to power in December 2007, nationalised the private pension system in November to help plug the hole in the government's finances.

Previously privatised companies such as Aerolineas Argentinas have also returned to state control.

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AUSTRALIA

Australia has experienced a long period of stable economic growth since its last recession in 1991, benefiting from the rise of China and India as markets for its raw materials.


LATEST NEWS
Australian Prime Minister Kevin Rudd

Australia in Asian trade pact
Australia unveils economic boost

However, its resources-based economy has struggled since the worldwide financial turmoil began in the middle of 2008.

Its mining firms are cutting back on capital spending, reducing staff numbers and mothballing projects.

The government of Prime Minister Kevin Rudd recently announced a 42bn Australian dollar ($26.5bn; £19bn) stimulus plan, as it seeks to shield the country from the global downturn.

Mr Rudd has argued that the G20 alone has the global economic reach to tackle the world economic crisis.

Mr Rudd continues to enjoy strong approval ratings over his handling of the economy, and is renowned for his strong work ethic, earning him the nickname Kevin 24/7.

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BRAZIL

Latin America's biggest economy is also the world's biggest exporter of products ranging from beef and chicken, to orange juice and coffee.


LATEST NEWS
Brazilian President Luiz Inacio Lula da Silva

Brazil wants bigger G20 role
Brazil squares up to economic storm

But it has been hit by sharp falls in world commodity prices as the global downturn curbs demand. Brazil's currency and stock markets have also suffered, after foreign investors sold off assets in order to cover losses back home.

The financial turmoil has already seen one big banking merger, between local giants Itau and Unibanco, and further consolidation may be in prospect.

Brazil's government recently criticised the "Buy American" clause in the US's $787bn (£563bn) economic stimulus package.

Brazilian President Luiz Inacio Lula da Silva said the US and other developed countries should not turn to protectionism.

And he hopes the G20 summit will lead to a greater role for developing countries in the world economy.

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CANADA

Thanks to the North American Free Trade Agreement (Nafta), Canada's economic health is closely linked to that of the US, which buys three-quarters of its exports.

LATEST NEWS
Canadian Prime Minister Stephen Harper

Canada approves stimulus plan
Canada unveils stimulus package

The ailing car industry, for instance, is as big a problem for Ottawa as it is for Washington. As a result, Canada has copied many of the US government's tactics, such as cutting interest rates and drawing up stimulus packages, although with the same lack of success.

However, Canada's banking sector and housing market are in better shape than in the US, with far fewer sub-prime mortgages.

In February, the Canadian parliament passed a 40bn Canadian dollar ($32bn; £23bn) economic stimulus package as part of the country's annual budget.

The successful vote was, however, hard to come by for the Conservative government, as opposition parties said the original stimulus deal was insufficient, sparking a political crisis.

The storm resulted in Prime Minister Stephen Harper suspending parliament for six weeks so his government could revise the plans.

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CHINA

The global downturn failed to prevent China overtaking Germany as the world's third-largest economy, but it has had serious consequences for the country, both internally and externally.

Chinese exports have been hit hard by falling world demand, with millions of rural migrants returning to their villages after the factories that employed them closed down.


LATEST NEWS
Premier Wen Jiabao

China warns on social unrest
China seeks economic reforms

China's waning appetite for raw materials has had a knock-on effect on other countries' exports, crushing hopes that key emerging markets could compensate for the developed world's slowdown.

Its banks have not felt the impact like elsewhere, but ordinary people have - with migrant workers especially hard hit.

While China's growth remains relatively strong compared to other countries, it has launched a $587bn stimulus package and has underlined that it now has the largest deficit in twenty years.

And China has recently been talking about the possibility of a new world currency to replace the dollar.

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FRANCE

Unlike most other G20 countries, France has already seen social unrest in response to the global downturn.

In January, millions of French workers in both public and private sectors took industrial action in protest at the government's handling of the economic crisis.


LATEST NEWS
President Nicolas Sarkozy

French fear for car industry
Sarkozy defends plans for economy

The government has since announced a 26bn-euro ($33.1bn; £23.5bn) initiative designed to revitalise the economy.

While France has not officially entered a recession, there are expectations that it will do so in 2009. Its trade deficit hit a record 55.7bn euros ($71.4bn; £48.6bn) in 2008.

President Nicolas Sarkozy has won domestic plaudits for his plans to offer financial support for French industry, most notably the country's carmakers. However, this has angered other European governments, who accuse him of protectionism.

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GERMANY

Germany's economy, which accounts for about a third of eurozone output, is set for a grim year.

The government has predicted that the economy will shrink by 2.25% in 2009, which would be its worst performance in the post-World War II era.


LATEST NEWS
Chancellor Angela Merkel

German economy faces gloomy 2009
Germany pushes bolder rescue plan

The news has come as a shock to many Germans, who prided themselves on their fiscal rectitude, unlike the free-spending, highly-indebted British and Americans.

However, Germany's export-led economy has been relying on demand in other countries, which has now dried up because of the global slowdown.

In February, the country approved a 50bn euro ($63bn, £44bn) stimulus plan, and Chancellor Angela Merkel said Germany would emerge from the economic crisis stronger than when it entered it.

"We are operating on the principle that Germany is strong and therefore can come to terms with this difficult economic situation," she said.

However, Mrs Merkel has warned other countries not to expect Germany to reflate its economy further before it sees how the initial stimulus package has worked.

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INDIA

India's economy has undoubtedly been affected by the global recession.


LATEST NEWS
Prime Minister Manmohan Singh

Indian economy in sharp slowdown
India worries boom will vanish

The most recent official figures showed that its economy grew by less than expected in the last three months of 2008.

The country's gross domestic product (GDP) grew by 5.3% between October and December, compared with 7.6% in the previous three months, and 8.9% in the same period a year earlier.

Agriculture, which makes up about a fifth of the economy was one of the sectors to see growth fall, while industrial firms such as Tata have been severely affected by the freeze in world credit markets and general fall in global spending.

The Congress-led government of Prime Minister Manmohan Singh now faces a general election, starting on 16 April.

It is hoping that pledged to waive farm loans and a rural employment guarantee scheme will help it win a second term in power.

India is worried that without a global stimulus plan at the G20, its economic boom may be over.

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INDONESIA

Globalisation has been a significant economic benefit for Indonesia in recent years.

Thanks in no small part to a big growth in manufacturing facilities for major multinationals, its economy grew 6.1% in 2008.


LATEST NEWS
President Susilo Bambang Yudhoyono

Corruption classes in Indonesia
Indonesia in Australian trade deal

However, with Western firms cutting back production towards the end of the year, Indonesia's exports dropped sharply in the final three months of the year.

To help lift the economy, the government of President Susilo Bambang Yudhoyono has passed a $6bn (£4.3bn) fiscal stimulus.

But with overseas debts estimated at $151.7bn, the government has its own financial woes.

Critics also say it isn't doing enough to stamp out corruption that continues to deter some would-be investors.

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ITALY

The Italian economy, the third-largest in the eurozone, was one of the first to enter recession.

Its economy has now shrunk for three quarters in succession: in the final three months of 2008, it declined by 1.8%, following previous contractions of 0.5% and 0.4%.


LATEST NEWS
Prime Minister Silvio Berlusconi

Economy boost for Spain and Italy
French and Italian output falls

It was also one of the first to approve a stimulus programme. In November, the government of Prime Minister Silvio Berlusconi approved an 80bn euro ($102bn; £66bn) emergency package that included tax breaks for poorer families, public works projects and mortgage relief.

Italy has the world's third-highest debt burden, expected to top 110% of GDP this year.

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JAPAN

By the Japanese government's own admission, it is facing the worst economic crisis since the end of World War II.

The slowdown in the world's second-biggest economy is steeper than that being experienced in the US or Europe, as Japan has been hit particularly hard by falling global demand for its products, particularly electronic equipment and cars.


LATEST NEWS
Japanese Prime Minister Taro Aso

Japan's economy in quarterly dive
Big fall in Japanese car sales

Consumers have cut back too, alarmed by rising unemployment. The economy contracted by 3.3% in the last three months of 2008, its worst showing since the oil crisis of the 1970s.

And in January its exports plunged 45.7% to a 10-year low.

Prime Minister Taro Aso is now pushing to introduce a stimulus package, but commentators said he is being hampered by his growing unpopularity within his own party.

MEXICO

The Mexican economy is so intertwined with that of the US that when Wall Street sneezes, Mexican firms can find themselves in intensive care.


LATEST NEWS
President Felipe Calderon

Protesters rally in Mexico City
Slowdown hits Mexico remittances

Under the North American Free Trade Agreement (Nafta), the proportion of Mexico's exports heading for the US has grown to 85%, leaving the country vulnerable to falling US demand.

Mexico also thrives on remittances from workers who have migrated to the US, but these have fallen for the first time since records began in 1995.

In January, thousands attended a rally in Mexico City to protest at the economic policies of President Felipe Calderon's government.

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RUSSIA

Russia's economy is reeling from the effect of a sharp fall in the price of oil.

The 2009 budget is expected to slip into deficit and analysts predict that the country is heading for its first recession since 1998.

LATEST NEWS
President Dmitry Medvedev

Russia braced for more challenges
Crisis hits Russia's super-rich

Russia's stock markets have plunged in recent months and the central bank has spent billions of dollars trying to support the rouble. The country has also seen unemployment rise sharply recently.

Social unrest has already been broken out in Vladivostok, while the financial crisis has cut the combined fortune of the 10 richest Russians by 66% to $75.9bn, according to business magazine Finans.

Overseas investment in the country is also being deterred by the perception that state-run firms bully or intimidate foreign companies into handing over control of their investments.

There is also widespread cynicism as to how much President Dmitry Medvedev is really in control, and whether power really lies with Prime Minister and former President Vladimir Putin.

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SAUDI ARABIA

The Saudi kingdom is the only G20 country that also belongs to oil producers' cartel Opec (Indonesia allowed its membership to lapse at the end of 2008).

LATEST NEWS
Saudi King Abdullah

Gulf states to see fall in growth
Major reshuffle in Saudi Arabia

The global downturn has led to lower demand for energy, further depressing world oil prices, despite Opec's attempts to cut output.

As a result, the International Monetary Fund predicts that Saudi Arabia and its neighbours will record fiscal deficits of up to 3.1% of GDP in 2009, a marked decline from surpluses of 22.8% of GDP in 2008.

King Abdullah recently replaced the country's central bank chief in a rare reshuffle.

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SOUTH AFRICA

South Africa has the continent's biggest economy and is the only African member of the G20.

The country has already been hit by the global recession, its economy contracting for the first time in 10 years in the last three months of 2008. Between October and December it shrank 1.8% from the previous quarter.

Like Brazil, it fears that the global downturn will lead to a rise in protectionism in rich nations, making it even harder for developing countries to gain a foothold in key markets and increasing their sense of economic isolation.


LATEST NEWS
President Kgalema Motlanthe

Dire warnings about protectionism
What lies ahead for Africa in 2009?

South Africa's finance minister Trevor Manuel told the World Economic Forum in Davos in January that Africa was "at risk of decoupling, derailment and abandonment together".

The African National Congress government of President Kgalema Motlanthe continues to face tough challenges in alleviating poverty and reducing crime levels.

The country goes to the polls on 22 April.

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SOUTH KOREA

The government in Seoul, like its neighbours in the region, fears that the global slowdown could lead to a repeat of the 1997-98 Asian economic crisis.


LATEST NEWS
Lee Myung-bak

East Asia nations hit by downturn
South Korea in $11bn economy plan

South Korea's economy shrank by 3.4% in the last quarter of 2008 compared with the year before, while President Lee Myung-bak has warned that his country faces an "economic emergency".

In response, the government has announced a stimulus package worth 14 trillion won ($10.9bn; £6.6bn) to boost the economy, with eleven trillion won aimed at public projects and three trillion won for tax cuts to encourage spending.

Meanwhile, interest rates have fallen to record lows.

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TURKEY

As it tries to revive its EU membership bid, Turkey has been talking up its response to the downturn as evidence that its reactions are those of a developed country, not an emerging market.


LATEST NEWS
Tayyip Erdogan

Turkey tries to revive EU drive
Which direction for Turkey now?

In the past three months, the central bank has cut interest rates by 3.75 percentage points, although the rate remains high by world standards at 13%.

However, the Turkish lira fell 25% against the dollar in 2008, while industrial output fell 19% in December. Loan talks with the International Monetary Fund were suspended in January after disagreements over the terms.

As well as trying to reduce unemployment levels from the current 12%, the government of Tayyip Erdogan has had to face constant suspicion of its Islamist roots, in a country where the secular and religious are often divided.

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UNITED KINGDOM

The International Monetary Fund expects the UK to suffer the worst contraction among advanced nations in 2009, with its economy predicted to shrink by 2.8%.


LATEST NEWS
Prime Minister Gordon Brown

Grim expectations for UK economy
Bank warns on further stimulus plans

The Bank of England has already cut interest rates to just 0.5% in a bid to help the British economy out of recession, while unemployment is now over 2 million - the highest level since 1997. It has also begun a programme of quantitative easing to pump more funds into the economy by purchasing government bonds.

Troubles in the banking sector have led the government to bail out some of the country's biggest financial institutions, including Royal Bank of Scotland, in which it now holds a 68% stake.

Recently, the governor of the Bank of England warned that the UK economy could not afford another stimulus package, with the government deficit set to soar to 11% of GDP.

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UNITED STATES

The global economic turmoil began in the US, thanks to the sub-prime mortgage crisis in which underperforming home loans were repackaged and sold on as toxic debt.


LATEST NEWS
Barack Obama

US interest rates kept near zero
Q&A: Obama stimulus plan

The Federal Reserve has cut interest rates to near zero in a bid to unfreeze the credit markets, while new Treasury Secretary Timothy Geithner has announced a partnership with the private sector to purchase toxic assets, in order to get them off the banks' balance sheets.

President Barack Obama has signed into law a slimmed-down economic stimulus plan worth $787bn (£563bn), but problems in the wider economy are worsening, with unemployment at its highest since 1992.

The government has also announced new plans for tougher financial regulation, including international oversight.

But President Obama has made it clear that he expects other countries to join the US in doing the heavy lifting of pulling the world economy out of recession.

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EUROPEAN UNION

Sixteen of the 27 European Union countries share the euro as their common currency. Their individual economic performances vary considerably, but the eurozone as a whole has been in recession since September 2008 and is forecast to shrink by 1.9% in 2009.


LATEST NEWS

Eurozone economy 'to shrink 1.9%'
Latvia's economy shrinks rapidly

Unemployment in the euro area is expected to exceed 10% in 2010, up from 7.5% in 2008. The eurozone's key interest rate is now at 2%, its lowest level since December 2005. The worst performing EU economy is Latvia, which does not belong to the eurozone. Latvian GDP could fall by as much as 10% this year.