The OECD's GDP grew by 0.4% in Q2 2023, compared to the previous quarter. This continued the moderate growth trend that has been seen since early 2022.

The G7 countries also saw GDP growth in Q2 2023, with Japan and France experiencing the most notable growth. The United States, the United Kingdom, and Canada also saw growth, albeit at a slower pace. However, Italy's GDP contracted, and Germany's growth remained flat.

The factors driving these changes varied among countries. In Japan, net exports were the main growth driver, while private consumption decreased. France saw growth supported by net exports, but private consumption declined. The UK experienced growth due to increased private and government spending, although net exports hindered it. The same was true for Germany, mainly due to decreased exports. In the US, investment and private consumption contributed to growth, though private consumption growth slowed. Italy's GDP contraction was attributed to reduced domestic demand.

Among the OECD countries geographically close to the Ukraine conflict, Lithuania's GDP rebounded strongly in Q2 2023, while Poland and Hungary experienced contractions for multiple quarters.

Regarding other OECD nations, Ireland had the highest GDP growth (3.3%) in Q2, followed by Slovenia and Costa Rica. Conversely, GDP contracted notably in Poland, Sweden, and Colombia.

Globally, the OECD area's GDP exceeded its pre-pandemic levels by 5.1% in Q2 2023. Among G7 nations, GDP surpassed pre-pandemic levels by 4.0%, except for the United Kingdom. Spain, severely impacted by the pandemic, finally surpassed its pre-pandemic GDP level in Q2 2023 by 0.4%.

The OECD projects global growth to be 2.7% in 2023, with a modest pick-up to 2.9% in 2024. This is well below the average growth rate in the decade preceding the COVID-19 pandemic. The main risks to the outlook include a further escalation of the war in Ukraine, a more pronounced tightening of financial conditions, and renewed COVID-19 outbreaks.

Source: https://www.oecd.org/sdd/na/gdp-growth-second-quarter-2023-oecd.htm?utm_term=pac&utm_medium=social&utm_content=3-SDD%2CGDP%2C1-Non-CampaignDirectorateContent%2C2-Well-FunctioningGlobalMarkets&utm_source=linkedin