OECD economies grew by 0.4% in the first quarter

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OECD economies grew by 0.4% in the first quarter
G7 economies grew by an average of 0.3% in the first quarter, the same percentage as in the previous period.

Gross Domestic Product (GDP) of all countries of the Organization for Economic Co-operation and Development (OECD) It grew 0.4% in the first quarter In the last three months of 2022, the Paris-based organization said.

In this way, the confederation of 38 states slightly accelerated from the one recorded at the end of last year, at which time it grew only 0.2% per quarter, although it continues to present the strongest stagnation since the beginning of the war. between Ukraine and Russia.

As for the G7 economies that are part of the system, they grew by an average of 0.3% in the first quarter, the same percentage as in the previous period.

Despite widespread stagnation, average GDP in the OECD area is already higher than it was before the pandemic

The panorama is different between these countries: Canada (+0.6%), Italy (+0.5%), Japan (+0.4%) and France (0.2%) started to grow GDP rapidly, stagnating or contracting in 2022. As in the Italian case; The economy slowed in the US (+0.3%, compared to 0.6% in the last quarter of 2022).

On the other hand, Growth in the United Kingdom showed no major changes and was 0.1%, returning to Germany, steady after falling 0.5% in the previous period.

Average GDP in the OECD area is already higher than it was before the pandemic
Average GDP in the OECD area is already higher than it was before the pandemic.

Another point where powers differ is the reasons for expansion. According to data released by its statistics agency, Japan’s growth was particularly driven by domestic demand (+0.7%) but faced a decline in net exports (exports minus imports).

The United Kingdom was headwinded by low public spending and a high trade deficit; Italy was boosted by net exports and domestic demand

France, meanwhile, had its engine on export 1.1% growth in net exports and 0.6% drop in imports; In the United States, while consumption accelerated (+0.9% vs. +0.3% in the previous quarter), inventory investment slowed.

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The United Kingdom, on the other hand, was headwinded by low public spending and a high trade deficit; Italy boosted by net exports and domestic demand; Investments and exports grew in Germany, but public spending and private consumption fell.

Economies grow after war-induced stagnation in Ukraine Photo AFP
The economy grew after the stagnation caused by the war in Ukraine. Photo: AFP.

The OECD report also highlighted OECD member countries that are geographically close to the war in Ukraine.

In this case, there is no common pattern: Lithuania (-3.0%) and Hungary (-0.2%) registered contractions, Poland (+3.9%) and Slovakia (+0.2%) grew.

Only Germany, Spain and the Czech Republic were unable to return to their pre-pandemic levels.

Among other countries in the group that provided data for the first quarter, Growth was in Portugal (+1.6%), Colombia (+1.4%), Mexico (+1.3%) and Finland (+1.1%).; Contracted in Ireland (-2.7%).

Despite widespread stagnation, average GDP in the OECD region is already higher than before the pandemic, 4.5% higher than that recorded in the last quarter of 2019.

However, there are notable individual cases that have yet to reach this milestone: only the economies of the United Kingdom, Germany, Spain and the Czech Republic have been unable to return to their pre-pandemic levels. Statuses so far..

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