G20 area's economy contracts 0.4% in Q2

ANKARA

The overall gross domestic product (GDP) of the G20 area fell by 0.4% quarter-on-quarter in the second quarter of this year, the Organization for Economic Co-operation and Development (OECD) said on Tuesday.

The contraction followed a 0.5% growth in the first quarter, the Paris-based organization noted in a statement.

The slowdown in the G20 area mainly reflected the sharp contraction in China due to the coronavirus-related lockdowns.

Meanwhile, the OECD area's economy expanded 0.4% in the April-June period, revised up from the preliminary estimate of 0.3%.

GDP also narrowed in India by 1.4% amid decreases in government spending and net trade, and in South Africa by 0.7% due to severe flooding in a key manufacturing province.

Economies in both the UK and US shrank by 0.1% in the second quarter.

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 area as a whole, Australia, Brazil, Italy, Japan, Korea and Türkiye recorded stronger quarterly growth.

Growth in Türkiye with 2.1% was supported by a marked increase in private consumption, according to the OECD statement.

In France, GDP rose by 0.5% in the second quarter, following a contraction of 0.2% in the previous quarter, while Canada’s growth remained steady at 0.8%.

On an annual basis, the GDP in G20 rose by 2.8% in the three-month period.