OECD area GDP rises 0.5% in 3rd quarter

By Tuba Ongun

The gross domestic product (GDP) in the Organization for Economic Cooperation and Development (OECD) area increased by 0.5% in the third quarter of this year compared to the previous quarter, according to data released on Tuesday.

The July-September quarterly growth was at the same pace as the second quarter, the OECD data showed.

Among the Group of Seven (G-7) countries, GDP hiked 0.6% quarter-on-quarter, picking up from 0.4% in April-June, thanks to an acceleration of the US economic growth.

The US economy grew 1.2% in the third quarter with the backing of private consumption, compared to 0.5% in the second quarter.

The remaining G-7 countries recorded zero, close-to-zero growth, or contraction in the three months to September.

The growth was flat in Canada, Italy, and the UK, 0.1% in France, while GDP in Japan and Germany shrank by 0.5% and 0.1%, respectively.

"In Japan, investment was a drag on growth, reflecting mainly the effect of destocking; net exports (exports minus imports) also weighed on growth due to a 5.0% increase in service imports in the third quarter," an OECD statement read.

Zero growth in Italy reflected a reduction in domestic demand, while the GDP contraction in Germany was driven by lower private consumption.

Among other OECD countries for which data is available, Poland and Costa Rica recorded the strongest GDP growth with 1.4% and 1.3%, respectively, followed by Hungary and Mexico (both 0.9%).

By contrast, GDP fell most in Ireland by 1.8% and Finland by 0.9% in the same period.

On an annual basis, the OECD area economy expanded 1.7% in the third quarter of 2023, following a 1.6% growth in the second quarter.