Monday, October 2, 2023

G20 GDP slows to 0.7% in Q2 due to weaker pull of Chinese economy

Gross domestic product (GDP) growth of G20 member countries, which does not include Spain, slowed to 0.7% in the second quarter of 2023 compared to the previous three months, when the expansion rate was 20% to 1%, according to the organization for Economic Cooperation and Development (OECD) provisionally announced this Thursday.

This slowdown was caused by the Chinese economy, which grew by 0.8% in the analyzed period, compared to 2.2% in the first three months of 2023. Brazil also contributed to this dynamic, with quarterly growth of 0.9% at, which is half of the 1.8% recorded between January and March last year.

Similarly, India saw a two-tenths decline in growth to 1.9%, while Canada and the European Union also saw a decline, registering zero growth from previous rates of 0.6% and 0.2%, respectively. In addition, GDP fell by 0.4% in Italy and by 0.1% in Saudi Arabia.

On the other hand, some countries returned to the growth path, such as Turkey, which grew by 3.5% due to the increase in private consumption, compared to a decline of 0.1% in the first quarter. GDP recovered in France (0.5% vs. 0%), Japan (1.2% vs. 0.8%), South Korea (0.6% vs. 0.3%), South Africa (0.6% vs. 0 .4%) and the United Kingdom (0.2% versus 0.1%).

Likewise, the “European locomotive” Germany recorded zero growth in the quarter after two periods of contraction, while it remained stable in Indonesia and Mexico (0.8% each), the United States (0.5%) and Australia (0.4%).

Total G20 GDP was 8.8% higher at mid-year than in the fourth quarter of 2019, leaving only the UK 0.2% below pre-pandemic levels.

Nation World News Desk
Nation World News Desk
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