GDP growth in OECD area decelerates to 1.6 percent in 2023

2/22/2024 2:38:24 AM

(MENAFN) Data released on Wednesday indicates that the Gross Domestic Product (GDP) across the Organization for Economic Cooperation and Development (OECD) area expanded by 1.6 percent in 2023, representing a notable deceleration from the 2.9 percent growth observed in 2022.

Within the 27 OECD countries for which data is available, 10 experienced economic contractions in the previous year. Estonia saw the most significant downturn, contracting by 3 percent year-on-year.

The OECD highlighted that only Costa Rica (5.1 percent vs. 4.6 percent), the United States (2.5 percent vs. 1.9 percent), and Japan (1.9 percent vs. 1.0 percent) exhibited higher growth rates in 2023 compared to the preceding year, as outlined in a statement from the Paris-based organization.

In the fourth quarter of 2023, GDP growth across the OECD area reached 0.4 percent quarter-on-quarter. Among the Group of Seven (G-7) countries, GDP expanded by 0.4 percent from October to December, following a 0.5 percent increase in the July-September period.

Notably, the GDP of the United Kingdom contracted by 0.3 percent, and Japan experienced a 0.1 percent decline for two consecutive quarters, while Germany also saw a shrinkage of 0.3 percent.

In the United States, growth moderated to 0.8 percent in the three months ending in December, down from 1.2 percent in the preceding period. France recorded zero growth for the second consecutive quarter, whereas the Canadian economy expanded by 0.3 percent in the final quarter, following a contraction in the third quarter.

Among other OECD countries, Costa Rica and Norway reported the strongest GDP growth in October-December, with rates of 1.8 percent and 1.5 percent, respectively, while Ireland experienced the most significant contraction, with GDP shrinking by 0.7 percent. These fluctuations underscore the diverse economic landscapes within the OECD and the varying factors influencing growth trajectories across different regions.

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