The gross domestic product (GDP) in the Organisation for Economic Co-operation and Development (OECD) rose by 0.5 per cent in the second quarter of 2024, the same pace as the last quarter, according to OECD estimates.

Despite the overall GDP growth rate for the OECD area and the euro area remaining unchanged in Q2 2024, the G7 GDP rose to 0.5 per cent in Q2 from 0.2 per cent in Q1.

However, the German economy contracted slightly, -0.1 per cent in Q2 following 0.2 per cent growth in Q1, due to “a decline, in particular, in gross fixed capital formation in machinery and equipment and in construction” as reported by the country’s statistical office.

Additionally, growth slowed slightly in Q2 for Italy and the UK. Italy’s growth slowed to 0.2 per cent in Q2 from 0.3 per cent in Q1, while the United Kingdom’s growth slowed to 0.6 per cent in Q2 from 0.7 per cent in Q1. Growth remained unchanged in France at 0.3 per cent.

For the OECD economies for which data is available, over half performed not as well in Q2 as in Q1, with growth turning negative in Latvia (-1.1 per cent), Sweden (-0.8 per cent), and Hungary (-0.2 per cent).

Meanwhile, the OECD countries showing the highest growth in Q2 were Poland with GDP growth of 1.5 per cent, Ireland (1.2 per cent) and the Netherlands (1 per cent).

Year-on-year GDP growth in the OECD was 1.8 per cent in Q2 2024, a slight increase from 1.7 per cent in Q1.

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