Industrialized countries growth continues to slow

OCDE GDP growth continues to slow in the second quarter of 2011[1]. In Germany, GDP growth slowed to 0.1% compared to 1.3% in the previous quarter, and in France, growth was 0.0%.

Gross domestic product (GDP) in the OECD area slowed to 0.2% in the second quarter of 2011, down from 0.3% in the previous quarter. This is the fourth consecutive quarter of slower growth.

Quarterly Real GDP Growth

Percentage change on the previous quarter

2010

2011

Q2

Q3

Q4

Q1

Q2

OECD-Total

1.0

0.6

0.5

0.3

0.2

European Union

1.0

0.5

0.2

0.8

0.2

Euro area

0.9

0.4

0.3

0.8

0.2

In this quarter the slowdown was particularly marked in the Euro area and the European Union, where growth slowed to 0.2% compared to 0.8% in the previous quarter. In Germany, GDP growth slowed to 0.1% compared to 1.3% in the previous quarter, and in France, growth was 0.0% compared to 0.9% in the previous quarter. In the United Kingdom, GDP growth slowed to 0.2% compared to 0.5% in the previous quarter. In contrast, GDP growth picked up to 0.3% in Italy and the United States compared to 0.1% in the first quarter.

GDP continued to contract in Japan but at a slower rate than in the previous quarter (minus 0.3% compared to minus 0.9%).

Relative to a year earlier, GDP increased by 1.6% in the second quarter of 2011 in the OECD area, down from 2.4% in the previous quarter.

 * Latest quarter not yet available for Canada.

Some Germany authorities have said that in the second quarter the growth rates would be adjusted for seasonal effects, given that the GDP growth increased in the first quarter (1.3%). However, the Germany growth rate have been slowed since the second quarter of 2010 (1,9%) (2010 Q3: 0,8%, and 2010 Q4: 0,5%), and it is unlikely that a downward of 1,2% may be due –solely– to seasonal effects.

On the contrary, these figures seem to confirm the trend towards a slowdown of the European –and Germany– growth and thus a slowdown of the world growth.

Notes: 

The Organization for European Economic Cooperation (OEEC) was established in 1947 to run the US-financed Marshall Plan for reconstruction of a continent ravaged by war. Canada and the US joined OEEC members in signing the new OECD Convention on 14 December 1960. The Organization for Economic Co-operation and Development (OECD) was officially born on 30 September 1961, when the Convention entered into force. Other countries joined in, starting with Japan in 1964; the last one was Estonia in December 2010.

OECD members (34 countries): Australia, Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom, United States.

OECD Major seven: Canada, France, Germany, Italy, Japan, United Kingdom, United States.

European Union (EU) 

27 Member states of EU: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom.

Euro area 

Euro area members (17 EU Members States): Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland. Italy, Luxembourg, Malta, The Netherlands, Portugal, Slovenia, Slovakia, Spain.

By Raul de Sagastizabal


[1] http://www.oecd.org/dataoecd/42/9/48539187.pdf, GDP growth – Second quarter of 2011, Paris, 22 August 2011.