Data exhibits diverging patterns across countries
As per the data released by OECD, the Quarterly Gross Domestic Product (GDP) in the G20 area grew by 0.8% in the second quarter of 2014 over the first quarter of 2014, showing improved growth compared with 0.6% in the previous quarter. This, however, masks diverging patterns across countries.Among G20 economies, growth accelerated in the second quarter in China (2.0%, compared with 1.5% in the previous quarter), Mexico (1.0%, compared with 0.4%) and Canada (0.8%, compared with 0.2%).
Following contractions in the previous quarter, GDP rebounded in the United States (1% in the second quarter, compared with minus 0.5% in the first quarter) and South Africa (0.2%, compared with minus 0.2%).
GDP growth remained stable at 1.2% in Indonesia and 0.8% in the United Kingdom and remained flat in France for the second consecutive quarter.
GDP growth slowed to 1.2% in India and to 0.5% in Australia and Korea, compared with 1.9%, 1.1% and 0.9%, respectively in the previous quarter.
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In Japan, GDP growth contracted significantly (by 1.8%), partly reflecting the effects of April's increase in consumption tax that brought spending forward and drove GDP up by 1.5% in the previous quarter. GDP also contracted in Germany, by 0.2%, following an increase of 0.7% in the first quarter of 2014.
GDP continued to contract in Brazil and Italy, by 0.6% and 0.2%, respectively, following contractions of 0.2% and 0.1% in the previous quarter.
Compared with the same quarter of 2013, GDP growth for the G20 area slowed to 3.2% in the second quarter of 2014 compared with 3.4% in the previous quarter, with China recording the highest growth rate (7.5%) and Brazil the largest contraction (minus 0.8%).
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