Gross domestic product in the G20 area fell 0.4% quarter-on-quarter in the second quarter of 2022 after rising 0.5% in the first three months, according to provisional estimates.
The slowdown in the G20 area in Q2 2022 mainly reflected the sharp contraction in China, where GDP fell by 2.6% quarter-on-quarter, as a result of lockdowns imposed to contain COVID-19 outbreaks, after rising by 1.4% in Q1 2022.
GDP also contracted in India (by 1.4%), South Africa (by 0.7%), and the United Kingdom and the United States (both by 0.1%).
In contrast to the contraction in the G20 area, GDP expanded by 0.4% in the OECD area in the second quarter.
Growth slowed but remained positive in Saudi Arabia (2.2%), Indonesia (1.0%), Mexico (0.9%) and Germany (0.1%), whereas Australia, Brazil, Italy, Japan, South Korea and Turkey recorded stronger growth in Q2 2022 than in the previous quarter. Growth in GDP remained lower than pre-pandemic levels in two G20 countries – Mexico and South Africa.
Meanwhile, OECD Composite Leading Indicators (CLIs), designed to anticipate turning points in economic activity over the next six-to-nine months, continue to signal a slowdown in most major economies and in the OECD area as a whole.
The CLIs are based on a range of forward-looking indicators such as order books, building permits, confidence indicators, long-term interest rates and new car registrations.
Among large OECD economies, the CLIs continue to anticipate a loss of growth momentum in Canada, the UK and the US, as well as in the euro area as a whole including France, Germany and Italy. Stable growth continues to be expected in Japan.
Among major emerging-market economies, the CLI for China (industrial sector) now points to a loss in growth momentum. In India, the CLI continues to indicate stable growth whereas in Brazil it signals growth losing momentum.
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