(MENAFN) The G-20 area saw a slowdown in gross domestic product (GDP) growth to 3.2 percent on an annual basis in 2022, according to official data released by the Organization for Economic Co-operation and Development (OECD) on Wednesday. This followed an annual growth rate of 6.3 percent in 2021, when economies began to recover from the initial impact of the COVID-19 pandemic. Among G-20 countries, Saudi Arabia saw the highest annual growth in 2022 at 8.7 percent, followed by India (6.7 percent), Türkiye (5.6 percent), and Indonesia (5.3 percent). Japan ranked last with only 1.0 percent growth.
In the last quarter of 2022, GDP in the G-20 area increased by 0.3 percent from the previous quarter, marking a significant slowdown from 1.4 percent growth in the third quarter. Most countries experienced slower growth or even negative growth in the October-January period last year. The Chinese economy stagnated in the last quarter after growing by 3.9 percent in the third quarter, while South Africa's GDP decreased by 1.3 percent following growth of 1.8 percent in the third quarter.
Several G-20 countries saw a contraction in the last quarter of 2022, including Germany and South Korea with contractions of 0.4 percent, followed by Brazil (0.2 percent) and Italy (0.1 percent). On the other hand, Indonesia and Saudi Arabia saw strong growth, with Indonesia's GDP increasing by 2.2 percent and Saudi Arabia's by 1.3 percent. Türkiye also saw growth of 0.9 percent after a slight contraction in the third quarter, according to OECD data.
The slowdown in GDP growth in the G-20 area reflects the challenges faced by economies in the aftermath of the COVID-19 pandemic, including supply chain disruptions, labor shortages, and rising inflation. However, the performance of individual countries within the G-20 varied widely, with some countries experiencing strong growth while others faced economic contraction. The coming years will be critical for G-20 countries to implement policies to support sustainable economic growth and address structural issues to build resilience against future shocks.
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