Gross domestic product in the OECD rose by 0.5% in the second quarter of 2024, the same pace as the previous quarter, according to provisional estimates.

Year-on-year, GDP growth in the OECD was 1.8% in Q2 2024, slightly up from 1.7% in Q1.

While the overall GDP growth rate for the OECD remained unchanged in Q2 2024 when compared to Q1 2024, in the G7 GDP rose faster in Q2, by 0.5% compared with 0.2% in Q1.

Growth in Japan increased by 0.8% in Q2, following a contraction of 0.6% in Q1. This recovery was driven by private consumption and investment.

Growth accelerated in the US from 0.4% in Q1 to 0.7% in Q2, driven mainly by an increase in private consumption.

It also rose slightly in Canada (from 0.4% to 0.5%) and remained unchanged in France (at 0.3%).

On the other hand, the German economy contracted slightly (-0.1% in Q2 following 0.2% growth in Q1), due to ‘a decline, in particular, in gross fixed capital formation in machinery and equipment and in construction’ as reported by the country’s statistical office.

Growth also slowed slightly in Italy and the UK in Q2 to 0.2% and 0.6% respectively, compared with 0.3% and 0.7% in Q1.

Among G7 economies, the US recorded the highest growth over the last four quarters (3.1%), while Japan recorded the largest fall (-0.8%).

Of the other OECD economies for which data is available, over half performed less well in Q2 than in Q1. Israel experienced the most significant slowdown, with quarter-on-quarter GDP growth falling from 4.1% in Q1 to 0.3% in Q2. Chile saw a 0.6% contraction in its economy after growth of 2.1% in Q1, while Colombia’s growth rate fell to 0.1% from 1.2% in Q1. Growth turned negative in Latvia (-1.1%), Sweden (-0.8%), Hungary and Korea (-0.2% in both countries).

By contrast, the OECD countries showing the highest growth in Q2 were Poland, with GDP growth of 1.5%, Costa Rica and Ireland (1.2% in both countries) and the Netherlands (1.0%).