The Gross Domestic Product (GDP) of the G20 fell by 0.4% quarterly in the second quarter of 2022, after having grown by 0.5% in the first quarter, according to provisional estimates from the OECD.
In a statement released this Tuesday, the Organization for Economic Cooperation and Development (OECD) also states that The contraction in the G20 area contrasts with GDP growth of 0.4% in the OECD in the second quarter of 2022
The G20 slowdown in the second quarter of 2022 mainly reflected the sharp contraction in China, where GDP fell by 2.6% in the second quarter after a 1.4% increase in the first quarter of 2022.
This contraction reflected lockdowns imposed to contain Covid-19 outbreaks.
GDP also fell in India (-1.4%), South Africa (-0.7%) and the United Kingdom and the United States (-0.1% in both countries).
In India, the main reasons for the slowdown were the declines in government spending and net trade (exports minus imports).
In South Africa, the economic recovery from the previous two quarters was undermined by severe flooding in a key industrial province.
Growth also slowed but remained positive in Saudi Arabia (+2.2%), Indonesia (+1.0%), Mexico (+0.9%) and Germany (+0.1%).
Despite the contraction in GDP in the G20 as a whole, Australia, Brazil, Italy, Japan, Korea and Turkey posted stronger growth in the second quarter of 2022 than in the previous quarter.
Turkey’s growth of 2.1% in the second quarter, compared to 0.7% in the first, was supported by a strong increase in private consumption.
In France, GDP increased by 0.5% in the second quarter of 2022, compared to a contraction of 0.2% in the previous quarter, while in Canada growth was stable at 0.8%.
In Q2 2022, GDP was below pre-pandemic levels (Q4 2019) in two G20 countries, namely Mexico and South Africa.
In Mexico, the GDP had not yet exceeded the level of 4Q 2019, remaining 1.1% lower than before the pandemic.
In South Africa, the 0.7% drop in GDP in the second quarter of 2022 brought the country’s GDP back to 0.5% below the level of the fourth quarter of 2019.
Source: Observadora
