Three out of five large economies recorded slow growth, shows data

Some larger economies are doing better than others. The United States (US) and China in particular have shown a stronger growth rate in the fourth quarter of the calendar year 2023

Some of India’s large economy peers recorded slower growth than before, or negative numbers in the December quarter. On the other hand, others such as the United States (US) and China have shown a stronger growth rate in the fourth quarter of the calendar year 2023 (Q4CY23), according to data from the Paris-based Organisation for Economic Co-operation and Development (OECD).

The US gross domestic product (GDP) grew by 3.1 per cent in the latest quarter and by 2.9 per cent in Q3CY23. China registered a 5.2 per cent growth in Q4CY23 compared to 4.9 per cent in the previous quarter. Japan recorded a slowdown, while Germany and the UK logged negative growth. (chart 1).

Despite this recent uptick in GDP figures, the OECD expects most advanced and emerging economies to slow down in 2024. The two largest economies, China and the US, are expected to continue the slowdown into 2025 (chart 2).

Many large economies showed the effects of higher interest rates as central banks looked to scale back the stimulus made available during the pandemic. They had cut interest rates and made money more easily available to spur global economic growth, which has taken a hit as interest rates head higher.