OECD GDP growth slightlly up to 0.5% in Q3 2024

The overall GDP growth rate for the G7 countries remained unchanged in Q3 2024, at 0.5 per cent. However, there was a mixed picture among the G7 countries. While growth in the United States remained stable in Q3 at 0.7 per cent, it slowed in Canada and Japan (from 0.5 per cent in Q2 to 0.2 per cent in Q3 in both countries), the United Kingdom (from 0.5 per cent to 0.1 per cent) and Italy (from 0.2 per cent to 0.0 per cent).

The slowdown in Japan mainly reflected contractions in investment (-0.3 per cent in Q3, compared with 1.6 per cent in Q2) and exports of services (-4.2 per cent, compared with 9.4 per cent), the latter mostly due to lower tourism.

In Italy, the reduction in growth was related to a negative contribution from net trade (exports minus imports) and mainly reflected a decrease of value added in agriculture, forestry and fishing, and in industry.

In the United Kingdom, the Q3 slowdown reflected destocking, which was the main drag on growth.

By contrast, growth accelerated in France in Q3 (from 0.2 per cent in Q2 to 0.4 per cent), mainly driven by an increase in private consumption (0.5 per cent compared with 0.0 per cent in Q2) boosted by the Paris Olympic and Paralympic Games.

Growth also rebounded in Germany (from a 0.3 per cent contraction to 0.2 per cent growth) after both government and private consumption increased notably in Q3, according to preliminary information published by the German statistical office.

Of the other OECD economies for which data is available, Hungary recorded the largest fall in GDP (-0.7 per cent), followed by Latvia (-0.4 per cent) and Sweden (-0.1 per cent). Ireland recorded the highest quarter-on-quarter growth rate in Q3 (2.0 per cent), followed by Mexico (1.3 per cent) and Lithuania (1.0 per cent).

Year-on-year, GDP growth in the OECD was 1.7 per cent in Q3 2024, slightly up from 1.6 per cent in Q2. Among G7 economies, the United States recorded the highest growth over the last four quarters (2.7 per cent), while Germany recorded the largest fall (-0.2 per cent).

Fibre2Fashion News Desk (RKS)