(MENAFN) Data released on Tuesday indicated that the gross domestic product (GDP) in the Organization for Economic Cooperation and Development (OECD) area saw a 0.5 percent increase in the third quarter of this year compared to the previous quarter. This quarterly growth rate matched that of the second quarter, as reported by OECD.
Within the Group of Seven (G-7) countries, GDP experienced a 0.6 percent quarter-on-quarter increase, a rise from the 0.4 percent growth observed in April-June. This improvement was attributed to the accelerated economic growth in the United States.
The US economy expanded by 1.2 percent in the third quarter, supported by private consumption, compared to the 0.5 percent growth recorded in the second quarter. In contrast, the remaining G-7 nations reported either stagnant growth, close-to-zero expansion, or contraction in the July-September period.
Canada, Italy, and the UK reported flat growth, France experienced a 0.1 percent increase, while Japan and Germany saw contractions of 0.5 percent and 0.1 percent, respectively.
"In Japan, investment was a drag on growth, reflecting mainly the effect of destocking; net exports (exports minus imports) also weighed on growth due to a 5.0 percent increase in service imports in the third quarter," an OECD report mentioned.
The absence of growth in Italy was reflective of a decline in domestic demand, while the contraction in GDP in Germany was primarily fueled by a decrease in private consumption.
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