OECD's GDP increases 0.4% QoQ in Q1 2024

27 May '24

3 min read

OECD's GDP increases 0.4% QoQ in Q1 2024

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The OECD reported a 0.4 per cent GDP increase in Q1 2024, up from 0.3 per cent in Q4 2023.
The UK and Germany showed recoveries, with GDPs increasing by 0.6 per cent and 0.2 per cent, respectively.
Israel recorded the strongest growth at 3.3 per cent.
The US saw slower growth at 0.4 per cent, while Japan's GDP contracted by 0.5 per cent in Q1.

The Organisation for Economic Co-operation and Development (OECD) has reported a 0.4 per cent rise in gross domestic product (GDP) for the first quarter (Q1) of 2024, slightly up from the 0.3 per cent growth recorded in the previous quarter, according to provisional estimates. While the overall GDP growth rate for the OECD changed little in Q1 2024, three-quarters of the OECD countries for which data is available showed improved economic performance compared to Q4 2023.

Among the G7 countries, the UK and Germany experienced notable recoveries. The UK’s GDP increased by 0.6 per cent in Q1, rebounding from a 0.3 per cent contraction in Q4. This recovery was primarily driven by a decrease in goods imports. Germany's GDP grew by 0.2 per cent in Q1, following a 0.5 per cent contraction in Q4, with growth driven by increased investment in construction and exports.

Canada also saw accelerated growth, with GDP rising from 0.2 per cent in Q4 to 0.6 per cent in Q1. Italy and France experienced modest growth, with Italy's GDP increasing from 0.1 per cent in Q4 to 0.3 per cent in Q1, and France's GDP rising from 0.1 per cent in Q4 to 0.2 per cent in Q1. The euro area as a whole showed growth of 0.3 per cent in Q1, following a contraction of 0.1 per cent in Q4, as per the data by OECD.

Among other OECD countries, Israel recorded the strongest GDP growth in Q1 at 3.3 per cent, compared with a 5.9 per cent contraction in Q4. This significant rebound was driven by recoveries in private consumption, which surged by 6 per cent in Q1 compared to a 7.6 per cent decline in Q4, and in investment, which increased by 10.5 per cent following a 25.2 per cent contraction.

Korea’s GDP growth accelerated to 1.3 per cent in Q1 from 0.6 per cent in Q4, reflecting increases in private consumption and a rebound in investment. Private consumption rose by 0.8 per cent in Q1 compared to 0.2 per cent in Q4, while investment grew by 1.5 per cent, following a contraction of 1.4 per cent.

Conversely, the economies of two G7 countries performed less well in Q1 compared to the previous quarter. The US saw GDP growth slow to 0.4 per cent in Q1 from 0.8 per cent in Q4, primarily due to a slowdown in final domestic demand and a 1.8 per cent rise in imports. Japan's GDP turned negative, with a contraction of 0.5 per cent in Q1 following zero growth in Q4. The contraction in Japan was due to a 0.7 per cent decrease in private consumption, a 5 per cent decline in exports of goods and services, and a 0.3 per cent contraction in investment.

Year-on-year, GDP in the OECD area grew by 1.6 per cent in Q1 2024, consistent with growth rates observed throughout 2023. Among G7 economies, the US recorded the highest growth over the past four quarters at 3 per cent, while Japan experienced the largest decline at 0.4 per cent.

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