G20 GDP growth stable in Q2; Brazil, Saudi Arabia lead in growth rates

Published: 2024-09-23

INSIGHTS

G20 GDP growth remained stable in Q2 at 0.7 per cent, slightly down from 0.8 per cent in Q1.
Brazil and Saudi Arabia led with 1.4 per cent growth, while China and India's growth slowed.
Japan rebounded with a 0.7 per cent increase, and US saw modest growth.
Several countries, including South Korea and Germany, saw contractions.
G20 GDP grew by 3.1 per cent YoY, with India leading at 6.8 per cent.

Gross domestic product (GDP) growth in the G20 area remained stable during the second quarter of 2024, registering a 0.7 per cent increase compared to the previous quarter’s 0.8 per cent growth, according to provisional estimates. Key drivers of this growth included China, India, and the United States, though Brazil and Saudi Arabia saw the highest individual growth rates, both at 1.4 per cent.

However, growth in China and India decelerated, with China’s GDP expansion slowing from 1.5 per cent to 0.7 per cent and India’s from 1.7 per cent to 1.3 per cent. Japan saw a notable recovery, rebounding from a 0.6 per cent contraction in the first quarter to a 0.7 per cent growth rate in Q2. The United States experienced modest growth, rising from 0.4 per cent to 0.7 per cent, the Organisation for Economic Co-operation and Development (OECD) said in a media release.

Several G20 nations experienced weaker growth than the G20 average. South Korea and Germany saw their economies contract by 0.2 per cent and 0.1 per cent, respectively. Turkiye experienced a sharp slowdown, with growth dropping from 1.4 per cent in Q1 to just 0.1 per cent in Q2. France, Italy, and the UK recorded marginal decreases, posting growth rates of 0.2 per cent, 0.2 per cent, and 0.6 per cent, respectively. Conversely, Canada and Mexico saw small increases, with GDP growing by 0.5 per cent and 0.2 per cent, respectively. South Africa’s economy improved, showing 0.4 per cent growth after stagnating in Q1, while Australia, the European Union, and the euro area all posted stable growth at 0.2 per cent.

Year-on-year, G20 GDP rose by 3.1 per cent in Q2 2024, slightly down from 3.2 per cent in Q1. India led the annual growth rates at 6.8 per cent, followed by Indonesia at 5.0 per cent, while Japan experienced the largest decline with a 0.9 per cent contraction.