Gross domestic product (GDP) in the G20 area grew by 0.7 per cent quarter-on-quarter (QoQ) in the second quarter (Q2) of 2023, down from 1.0 per cent in the previous quarter, as per provisional estimates. The slowdown in the G20 area in Q2 2023 mainly reflected a deceleration of the economy in China, where GDP growth slowed to 0.8 per cent compared with 2.2 per cent in the previous quarter.

A decline in G20 merchandise trade in Q2 2023 also contributed to the G20 economic slowdown. Growth also slowed in Brazil to 0.9 per cent in Q2, compared with 1.8 per cent in Q1 and to a lesser extent in India to 1.9 per cent, compared with 2.1 per cent. In Canada and the European Union, zero growth was recorded in Q2 2023, after GDP grew by 0.6 per cent and 0.2 per cent respectively in the previous quarter. Furthermore, GDP decreased in Italy by 0.4 per cent in Q2 2023, as well as in Saudi Arabia by 0.1 per cent, the Organization for Economic Co-operation and Development (OECD) said in a press release.

Despite the slower growth in the G20 area as a whole, GDP grew strongly in Turkiye in Q2 2023 by 3.5 per cent, compared with a contraction of 0.1 per cent in Q1, mainly reflecting an acceleration of private consumption at 5.2 per cent in Q2, compared with 3.0 per cent in Q1.

Growth also increased in France, Japan, Korea, South Africa, and the UK. In Germany, there was zero GDP growth in Q2 2023 after two quarters of contraction. Compared with the first quarter, growth remained unchanged in Indonesia and Mexico at 0.8 per cent in both countries, in the US at 0.5 per cent, and in Australia at 0.4 per cent.

In Q2 2023, GDP in the G20 area exceeded its pre-pandemic (Q4 2019) level by 8.8 per cent. However, in the UK, GDP remained below its pre-pandemic level by 0.2 per cent.

Fibre2Fashion News Desk (NB)

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