Gross domestic product (GDP) in the G20 area grew by 0.7% quarter-on-quarter in the fourth quarter of 2023 according to provisional estimates by the Organisation for Economic Co-operation and Development.

The 0.7% increase was slightly down from 0.8% quarterly growth in the previous quarter.

Performance was mixed across different countries during the fourth quarter. GDP growth weakened in China (to 1.0% in Q4 compared with 1.5% in Q3) and the US (to 0.8% in Q4 compared with 1.2% in Q3). In Mexico, GDP growth fell from 1.1% in Q3 2023 to 0.1% in Q4. GDP growth slowed slightly in Australia and turned negative in Germany and the UK (-0.3% in Q4 in both countries).

GDP growth accelerated in the remaining G20 countries, most notably in Turkey (to 1.0% in Q4 compared with 0.3% in Q3) and recovered in Canada and Japan after contractions in the previous quarter.

In Saudi Arabia, GDP contracted, but by much less than the previous quarter (-0.6% in Q4 compared with -2.3% in Q3). Growth remained unchanged from Q3 in Indonesia (1.2%), Korea (0.6%), Italy (0.2%), and Brazil (0.0%).

Meanwhile, initial annual estimates indicate that G20 GDP growth was 3.2% in 2023, the same as in 2022. This contrasts with a slowdown in the OECD, as GDP growth fell to 1.7% in 2023 from 2.9% in 2022.

Four G20 countries recorded higher GDP growth in 2023 than in 2022. In India, growth jumped to 7.7% compared with 6.5% in 2022, the highest annual growth rate among G20 countries for which data is available. India’s growth in 2023 was driven primarily by an 8.5% increase in investment.

Growth in China recorded an increase to 5.2% in 2023 up from 3.0% in 2022. Annual growth also increased in the US and Japan. In 2023, GDP contracted only in Saudi Arabia (-0.8%) and Germany (-0.3%), while growth weakened but remained positive in the remaining 11 G20 countries for which data is available.