Growth remains weak in Q2 2022 – OECD
The Organization for Economic Cooperation and Development (OECD) in August released its gross domestic product (GDP) figures for the second quarter of 2022. According to provisional estimates, Q2 2022 GDP in the OECD rose by 0.3% quarter-on-quarter, equal to the growth in the previous quarter.
GDP growth was negative in the United States and the United Kingdom (both minus 0.1%), and it slowed down sharply in Germany (0.1% compared to 0.8% in the previous quarter). On the other hand, growth turned positive in Japan and France (0.5%) and picked up pace in Italy (1.0%) and Canada (1.1%).
Net exports (exports minus imports) were the main driver of the positive GDP growth in France. Net exports also made a positive contribution in the United Kingdom and the United States, but this was offset by decreases in inventory investment (destocking) in both countries and by contractions in investment in the United States and in government consumption in the United Kingdom.
On the contrary, net exports contributed negatively to GDP growth in Germany, while private consumption and government consumption had a positive impact. In Japan, destocking made a negative contribution to GDP growth, but this was more than offset by an increase in private consumption.
GDP growth increased in several other European countries in Q2 2022, including the Netherlands, which saw an increase of 2.6%, Sweden (1.4%), Spain (1.1%), Norway and Denmark (both 0.7%), and Finland (0.6%). Israel recorded the strongest GDP growth (1.7%), followed by Mexico (1.0%).
Italy and Japan exceeded their pre-pandemic (Q4 2019) levels of GDP for the first time in Q2 2022, by 1.0% and by 0.2%, respectively. Furthermore, Germany reached its pre-pandemic level for the first time. This means that as of Q2 2022 all G7 countries are now recording GDP levels equal to or exceeding pre-pandemic levels.