G-20 economic growth eases to 0.7% in Q2

By Tuba Ongun

ANKARA (AA) – The Group of 20 (G-20) nations' cumulative economic growth rate slowed to 0.7% in the second quarter of 2023, according to an international group on Thursday.

The figure was down from 1% quarter-on-quarter gross domestic product (GDP) growth in the first three-month period of this year, the Organization for Economic Cooperation and Development (OECD) said in a report.

"The slowdown in the G20 area in the second quarter mainly reflected a deceleration of the economy in China, where GDP growth slowed to 0.8% compared with 2.2% in the previous quarter," the report said.

A contraction in G-20 merchandise trade in April-June was another driver behind the economic slowdown.

Quarterly expansion also slowed in Brazil (to 0.9% in the second quarter from 1.8% in the previous quarter) and in India (to 1.9%, compared with 2.1%).

In Canada and the EU, zero growth was posted in the three months to June, after GDP grew by 0.6% and 0.2% respectively in the previous period.

Italy’s economy contracted 0.4% quarterly in April-June, and the Saudi economy narrowed by 0.1%.

GDP grew strongly in Türkiye in the second quarter, with 3.5%, shifting from a 0.1% contraction in the previous period, mainly reflecting an acceleration of private consumption.

In the three months to June, GDP in the G-20 area surpassed its pre-pandemic level by 8.8%.

In the OECD area, made up of 38 countries, including a dozen G-20 countries, GDP growth came in at 0.5% quarter-on-quarter in April-June.

On an annual basis, the G-20 area GDP grew 3.5% in the second quarter of 2023, compared to 2.8% in the first quarter.