GDP growth weakens in a majority of G-20 economies: OECD

India recorded the highest growth of 7.2% in Q3 of CY2018

Growth of real gross domestic product (GDP) in the G-20 area eased to 0.8% in the third quarter of 2018, compared with 1.0% in the previous quarter, according to provisional estimates released by OECD.

GDP contracted in four G-20 countries in the third quarter of 2018, following growth in the previous quarter. Turkey recorded the sharpest contraction (minus 1.1%), on the back of the Lira's significant depreciation in August, followed by Japan (minus 0.6%, compared with 0.7% in the previous quarter), Germany (minus 0.2%, compared with 0.5%) and Italy (minus 0.1%, compared with 0.2%).

 

GDP growth slowed in a majority of the remaining G-20 economies for which data are available. Growth slowed significantly in Australia (to 0.3%, from 0.9%), and, to a lesser extent, in India (to 1.5%, from 1.8%), Canada (to 0.5%, from 0.7%), Russia (to 0.3%, from 0.5%), China (to 1.6%, from 1.7%) and the United States (to 0.9, from 1.0%). It also slowed in the European Union (to 0.3%, from 0.5%).

On the other hand, growth rebounded in Mexico and South Africa, to 0.8% and 0.6%, respectively in the third quarter of 2018, following a contraction of 0.1% in the previous quarter in both countries. Growth also picked-up significantly in Brazil (to 0.8%, from 0.2%), and, to a lesser extent, in the United Kingdom (to 0.6%, from 0.4% in the previous quarter, albeit latest estimates for the UK for October point to a slowdown from Q3) and France (to 0.4%, from 0.2%). GDP growth was stable in Indonesia (1.3%) and Korea (0.6%).

Year-on-year GDP growth for the G20 area slowed to 3.6% in the third quarter of 2018 (from 3.8% in the previous quarter), with India recording the highest growth (7.2%) and Japan the lowest (0.1%).

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