OECD GDP slows in Q3 2021 but regains pre-pandemic level

The GDP growth was driven by the strong performance of the United States, South Korea, Israel and some European countries.

However, quarter-on-quarter GDP growth of the OECD area is estimated to have slowed to 0.9 per cent in Q3 2021, compared with 1.7 per cent in Q2.

In the major seven (G7) economies, quarter-on-quarter GDP growth matched the OECD trend, slowing to 0.9 per cent in Q3 2021 from 1.7 per cent in Q2. All G7 countries except Japan experienced rises in GDP in Q3 2021, but between Q4 2019 and Q3 2021 there was no change in GDP for the G7 countries as a whole.

While US GDP exceeded its pre-pandemic level by 1.4 per cent in Q3 2021, GDP of the other six countries remained below pre-pandemic levels, OECD said in a press release.

In Q3 2021, France recorded the strongest quarter-on-quarter GDP growth (3 per cent, compared with 1.3 per cent in the previous quarter), followed by Italy (2.6 per cent compared with 2.7 per cent in the previous quarter). In Germany and the United Kingdom, GDP grew by 1.8 per cent and by 1.3 per cent respectively, compared with 1.9 per cent and 5.5 per cent in the previous quarter.

In Canada, GDP grew by 0.5 per cent in Q3 2021 after falling by 0.3 per cent in Q2. The United States recorded a growth rate of 0.5 per cent, down from 1.6 per cent in the previous quarter. Japan was the only G7 country to report a GDP contraction in the third quarter of 2021 (minus 0.8 per cent compared with an increase of 0.4 per cent in the previous quarter).

In the euro area and the European Union, GDP rose by 2.2 per cent and 2.1 per cent respectively in the third quarter of 2021, following increases of 2.1 per cent and 2 in the previous quarter.

Fibre2Fashion News Desk (DS)