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GDP in G20 area rose 0.7% QoQ in Q1 2022: OECD

15 Jun '22
2 min read
Pic: Shutterstock
Pic: Shutterstock

In the first quarter of 2022, gross domestic product (GDP) in the G20 area rose by 0.7 per cent quarter-on-quarter (QoQ) according to provisional estimates, down from the 1.3 per cent increase recorded in the fourth quarter of 2021, according to the Organisation for Economic Co-operation and Development (OECD).

The slowdown in the G20 area in Q1 2022 mainly reflects weaker performance in the United States, where GDP contracted by 0.4 per cent QoQ after rising by 1.7 per cent in Q4 2021. This was mainly due to changes in net trade (exports minus imports) and decreases in inventory investment (destocking) and in government spending on COVID-19 assistance.

In Australia and Indonesia, growth slowed by more than 2 percentage points between Q4 2021 and Q1 2022. Growth slowed to a lesser extent in Canada, China, India, Italy, Korea, Turkey and the United Kingdom in Q1 2022, while in France and Japan there were GDP contractions of 0.2 per cent and 0.1 per cent respectively, the OECD said in a media release.

Despite the trend for the G20 area as a whole, Brazil, Germany, Mexico, Saudi Arabia, South Africa and the European Union as a whole recorded stronger growth in Q1 2022 than in Q4 2021. Growth in Saudi Arabia (2.6 per cent) was the highest among G20 economies, driven by a marked increase in oil activities.

In the OECD area, which comprises 38 countries including a dozen G20 countries, GDP growth is now estimated at 0.3 per cent in Q1 2022. This figure has been revised from 0.1 per cent growth estimated three weeks ago based on countries’ preliminary GDP releases. Since then, among G7 countries, GDP QoQ growth in Q1 2022 has been revised upwards in Italy and Japan and downwards in Canada and France. Also, Ireland has published its Q1 2022 GDP growth estimate, which has added almost 0.1 percentage points to OECD area GDP growth.

The United Kingdom and South Africa exceeded their pre-pandemic (Q4 2019) level of GDP for the first time in Q1 2022, by 0.7 per cent and 0.5 per cent respectively, while Italy reached its pre-pandemic (Q4 2019) level of GDP for the first time. Among the G20 economies, GDP in Germany, Japan and Mexico remained below pre-pandemic levels (by 0.9 per cent, 0.6 per cent and 2.1 per cent respectively) in Q1 2022.

ALCHEMPro News Desk (KD)

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