0.4% decline in G20 GDP within the second quarter of 2022

Gross home product (GDP) within the G20 space fell 0.4% quarter on quarter within the second quarter of 2022, after rising 0.5% within the first quarter, based on preliminary estimates. The contraction within the G20 space contrasts with GDP development of 0.4% within the OECD space within the second quarter of 2022.

The slowdown within the G20 space in Q2 2022 primarily displays the sharp contraction in China, the place GDP fell 2.6% quarter-on-quarter after rising 1.4% in Q1 2022. This contraction displays the restrictive measures put in place. in place to comprise the resurgence of COVID-19. GDP additionally contracted in India (by 1.4%), South Africa (by 0.7%) and the UK and the USA (by 0.1% in each international locations). In India, the primary causes for the slowdown have been cuts in authorities spending and web commerce (exports minus imports). In South Africa, the financial restoration of the earlier two quarters was undermined by extreme flooding in a serious manufacturing province. Development additionally slowed however remained constructive in Saudi Arabia (2.2%), Indonesia (1.0%), Mexico (0.9%) and Germany (0.1%).

Regardless of the contraction in GDP throughout the G20 space, Australia, Brazil, Korea, Italy, Japan and Türkiye recorded stronger development in Q2 2022 than within the earlier quarter. Development in Türkiye (2.1% in Q2 2022 in comparison with 0.7% in Q1 2022) was supported by a marked enhance in personal consumption. In France, GDP grew by 0.5% in Q2 2022 after contracting by 0.2% within the earlier quarter, whereas in Canada development remained steady at 0.8%.

Within the second quarter of 2022, GDP was under pre-pandemic ranges (This fall 2019) in two G20 international locations. In Mexico, GDP had not but exceeded its stage of This fall 2019, remaining 1.1% decrease than earlier than the pandemic. In South Africa, the 0.7% drop in GDP in Q2 2022 introduced the nation’s GDP right down to 0.5% under its stage in This fall 2019.