Gross domestic product (GDP) of the G20 area grew by 1.7% between the second and the third quarter of 2021, up from a quarter-on-quarter growth rate of 0.4% in the second quarter, according to provisional estimates from the Organisation for Economic Co-operation and Development.

This growth is in contrast with the slowing trend recorded in the OECD area over the same period (from 1.7% in Q2 to 1.1% in Q3).

The growth recorded in the G20 area in the third quarter of 2021 reflects a rebound in India, where GDP rose by 12.7% in Q3, after a contraction of 11.6% in Q2, mainly driven by fixed investment and private consumption.

GDP also rose markedly in Saudi Arabia (by 5.8% in Q3, from 1.1% in Q2), exceeding its pre-pandemic level for the first time, and in Turkey (by 2.7%, from 1.5%). Growth recovered more than previously estimated in Canada (by 1.3%, from minus 0.8%), and there was a robust contribution from some European countries including France and Italy.

However, several other G20 countries recorded a deceleration or a contraction in GDP growth.

In China, quarter-on-quarter GDP growth slowed to 0.2%, from 1.2%, and in South Korea to 0.3%, from 0.8%, in the third quarter of 2021.

Growth slipped into negative territory in Australia (-1.9%), South Africa (-1.5%), Japan (-0.9%), Indonesia (-0.6%) and Mexico (-0.4%), and it continued to contract in Brazil (-0.1%, after -0.4%). These contractions reflected mainly negative contributions from private consumption in Australia, Indonesia and South Africa, and from exports in Brazil and South Africa.

While GDP for the G20 area as a whole exceeded its pre-pandemic level in the first quarter of 2021, half of the G20 economies, including all G7 economies except the US, remain below pre-pandemic levels.