Recovery in US and China Economies... G20 3Q GDP Up 1.3% QoQ

Japan, UK, and Turkiye Only Countries with Negative Growth
UK Alone Among G20 Fails to Recover to Pre-COVID-19 Levels

Major 20 Countries (G20) GDP Growth Rate Compared to the Previous Quarter in Q3 This Year (Source: Organisation for Economic Co-operation and Development)

[Asia Economy Reporter Minwoo Lee] The gross domestic product (GDP) of the Group of Twenty (G20) countries grew by 1.3% quarter-on-quarter in the third quarter of this year. This is attributed to China easing its COVID-19 lockdown policies.

On the 13th (local time), the Organisation for Economic Co-operation and Development (OECD), headquartered in Paris, France, released the 'G20 GDP Growth' statistics containing this information. According to the announcement, the quarter-on-quarter GDP growth rate for the G20 region was preliminarily estimated at 1.3%. This is a significant improvement compared to the 0.3% growth in the second quarter. The overall GDP growth rate for OECD countries in the third quarter was only 0.4%.

China's recovery appears to have had an impact. China's GDP in the third quarter also grew by 3.9% quarter-on-quarter, an increase of 1.2 percentage points compared to the 2.7% growth rate in the second quarter. The recovery of the U.S. economy also contributed. Thanks to a trade surplus, the U.S. GDP grew by 0.7% quarter-on-quarter in the third quarter, a significant improvement from the 0.1% growth rate in the second quarter. The growth of the U.S. and China accounted for about 80% of the G20 GDP growth.

Meanwhile, the GDPs of South Africa, India, Germany, and Saudi Arabia also recovered. On the other hand, Japan, the United Kingdom, and T?rkiye saw their GDPs decline in the third quarter compared to the previous quarter.

Some countries experienced slower growth compared to the previous quarter. Brazil and Italy recorded GDP growth rates of 0.4% and 0.5% in the third quarter, down from 1.0% and 1.1% respectively in the previous quarter. South Korea also showed a sluggish growth rate of 0.3% in the third quarter, down from 0.7% in the previous quarter. France's growth rate fell from 0.5% in the previous quarter to 0.2% in the third quarter. Australia, Canada, Indonesia, and Mexico also saw their growth rates slow, but their declines were somewhat more moderate than the four countries mentioned earlier.

Meanwhile, the G20 region's GDP in the third quarter of this year grew by 6.0% compared to the fourth quarter of 2019, before the COVID-19 pandemic. Among the G20 countries, only the United Kingdom has not yet recovered to pre-pandemic levels.