In the G7 countries, however, GDP rose faster in Q2, by 0.5 per cent compared with 0.2 per cent in Q1 2024.

Growth in Japan increased by 0.8 per cent in Q2 2024, following a contraction of 0.6 per cent in Q1. This recovery was driven by private consumption (1.0 per cent in Q2 compared with minus 0.6 per cent in Q1) and investment (1.7 per cent in Q2 compared with Q1’s minus 0.9 per cent).

Growth accelerated in the United States from 0.4 per cent in Q1 to 0.7 per cent in Q2 2024, driven mainly by an increase in private consumption (0.6 per cent in Q2 compared with 0.4 per cent in Q1).

It also rose slightly in Canada (from 0.4 per cent in Q1 to 0.5 per cent in Q1) and remained unchanged in France (at 0.3 per cent), an OECD release said.

On the other hand, the German economy contracted slightly (minus 0.1 per cent in Q2 following 0.2 per cent growth in Q1), due to “a decline, in particular, in gross fixed capital formation in machinery and equipment and in construction” as reported by the country’s statistical office.

Growth also slowed slightly in Italy and the United Kingdom in Q2 2024 to 0.2 per cent and 0.6 per cent respectively, compared with 0.3 per cent and 0.7 per cent in Q1.

Of the other OECD economies for which data is available, over half performed less well in Q2 2024 than in Q1. Israel experienced the most significant slowdown, with quarter-on-quarter GDP growth falling from 4.1 per cent in Q1 to 0.3 per cent in Q2.

Chile saw a 0.6 per cent contraction in its economy after growth of 2.1 per cent in Q1, while Colombia’s growth rate fell to 0.1 per cent from 1.2 per cent in Q1.

Growth turned negative in Latvia (minus 1.1 per cent), Sweden (minus 0.8 per cent), Hungary and South Korea (minus 0.2 per cent in both).

By contrast, the OECD countries showing the highest growth in Q2 were Poland, with GDP growth of 1.5 per cent, Costa Rica and Ireland (1.2 per cent in both countries) and the Netherlands (1 per cent).

Year-on-year GDP growth in the OECD was 1.8 per cent in Q2 2024, slightly up from 1.7 per cent in Q1.

Among G7 economies, the United States recorded the highest growth over the last four quarters (3.1 per cent), while Japan recorded the largest fall (minus 0.8 per cent).

Fibre2Fashion News Desk (DS)