G20 GDP growth slows to 0.7% in the second quarter of 2023

Gross domestic product (GDP) in the G20 area grew by 0.7% quarter-on-quarter in the second quarter of 2023 according to provisional estimates, down from 1.0% in the previous quarter.

The slowdown in the G20 area in Q2 2023 mainly reflected a deceleration of the economy in China, where GDP growth slowed to 0.8% compared with 2.2% in the previous quarter.

A decline in G20 merchandise trade in Q2 2023 also contributed to the G20 economic slowdown. Growth also slowed in Brazil (to 0.9% in Q2, compared with 1.8% in Q1) and to a lesser extent in India (to 1.9%, compared with 2.1%).

In Canada and the European Union, zero growth was recorded in Q2 2023, after GDP grew by 0.6% and 0.2% respectively in the previous quarter. Furthermore, GDP decreased in Italy (by 0.4% in Q2 2023), as well as in Saudi Arabia (by 0.1%).

Despite the slower growth in the G20 area as a whole, GDP grew strongly in Türkiye in Q2 2023 (by 3.5%, compared with a contraction of 0.1% in Q1), mainly reflecting an acceleration of private consumption (5.2% in Q2, compared with 3.0% in Q1).

Growth also increased in France, Japan, Korea, South Africa and the United Kingdom. In Germany, there was zero GDP growth in Q2 2023 after two quarters of contraction.

with the first quarter, growth remained unchanged in Indonesia and Mexico (at 0.8% in both countries), in the United States (at 0.5%), and in Australia (at 0.4%).

In Q2 2023, GDP in the G20 area exceeded its pre-pandemic (Q4 2019) level by 8.8%. However, in the United Kingdom, GDP remained below its pre-pandemic level by 0.2%.