Gross domestic product (GDP) across the Organisation for Economic Co-operation and Development countries rose by 0.5% in the third quarter of 2023, the same pace as the previous quarter, according to provisional estimates.

The OECD comprises 38 democracies with market-based economies including many European countries as well as the US.

GDP in the OECD exceeded its pre-pandemic (Q4 2019) level by 6.0% in Q3 2023.

Among G7 countries, quarter-on-quarter GDP growth picked up to 0.6% in Q3, from 0.4% in Q2, driven by a significant acceleration of GDP growth in the US (1.2% in Q3, compared with 0.5% in Q2). The remaining G7 countries recorded zero, close-to-zero, or declines in Q3: growth was flat in Canada, Italy, and the UK, 0.1% in France, and negative in Japan and Germany (-0.5% and -0.1% respectively).

In the US, the acceleration in GDP growth was driven by an increase in private consumption by 1.0% in Q3, compared with 0.2% in Q2.

In Japan, investment was a drag on growth, reflecting mainly the effect of destocking; net exports (exports minus imports) also weighed on growth due to a 5.0% increase in service imports in Q3.

Similarly, in France, destocking and net exports dragged down growth, in this case reflecting a 1.4% drop in exports.

In the UK, private and government spending fell by 0.4% and 0.5% respectively in Q3, and fixed investment by 2%.

According to preliminary analyses released nationally, zero growth in Italy reflected a reduction in domestic demand (including changes in inventories), while the GDP contraction in Germany was driven by lower private consumption.

Among other OECD countries for which data is available, Poland and Costa Rica recorded the strongest GDP growth (1.4% and 1.3% respectively) in Q3, followed by Hungary and Mexico (both 0.9%). By contrast, GDP contracted most in Ireland (-1.8%), followed by Finland (-0.9%).