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OECD area economic growth slows sharply in Q1

In G7, quarter-on-quarter GDP growth turns negative in Q1, shows official data

Gross domestic product (GDP) in the OECD rose 0.1% quarter-on-quarter according to provisional estimates, a sharp slowdown compared with the 1.2% rise in the fourth quarter of 2021, according to official data released on Monday.

“In the G7, quarter-on-quarter GDP growth turned negative in Q1 2022, falling by 0.1% compared with an increase of 1.2% in Q4 2021,” an OECD statement said.

The G7 figures reflect negative GDP growth in the US (minus 0.4%), Italy (minus 0.2%) and Japan (minus 0.2%), as well as zero growth in France and weaker positive growth in the UK (0.8%) and Canada (1.4%) than in the previous quarter.

Germany was the only G7 country where the pace of growth accelerated with 0.2% in the first quarter of 2022, compared with a contraction of 0.3% in the previous quarter.

Changes in net trade (exports minus imports), partly due to supply chain disruptions, were the main factor behind the slower or negative GDP growth recorded in the UK, the US and Japan.

Among other OECD countries, Portugal and Austria saw the highest increases in GDP compared with the previous quarter (2.6% and 2.5% respectively), followed by Hungary and Latvia 2.1% each.

Decreases were seen in Norway (minus 1.0%), Chile (minus 0.8%), Costa Rica (minus 0.5%), Israel and Sweden (minus 0.4% in both countries) and Denmark (minus 0.1%).

The UK exceeded its quarter four 2019 pre-pandemic level for the first time in the first quarter of 2022, by 0.7%.

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