The downturn in the G20 area in Q4 2022 and the previous volatility in 2022 mainly reflected trends in China, which accounted for almost one-quarter of the G20’s total GDP. Growth in China fell from 3.9 per cent in Q3 2022 to zero in Q4 as the easing of COVID-19 restrictions was accompanied by a rapid spread of infections which affected various sectors of the economy, the OECD said in a news release.
G20 area’s GDP growth slowed to 0.3 per cent QoQ in Q4 2022 from 1.4 per cent in Q3, ending a volatile year where growth fluctuated between 0.7 per cent and -0.2 per cent. China’s growth fell to zero in Q4, affecting various sectors of the economy. Most other G20 countries also experienced slower GDP growth in Q4, except for Indonesia and Saudi Arabia.
GDP growth also slowed or turned negative in most other G20 countries in Q4 2022. In South Africa, GDP contracted by 1.3 per cent, following growth of 1.8 per cent in Q3. GDP also contracted in Germany and Korea by 0.4 per cent in both countries, Brazil by 0.2 per cent, and Italy by 0.1 per cent. On the other hand, GDP grew comparatively fast in Indonesia at 2.2 per cent and Saudi Arabia at 1.3 per cent. In Turkiye, GDP grew by 0.9 per cent after a slight contraction in Q3 2022. In the euro area, Canada, Japan and the UK, growth was flat in Q4 2022.
Initial estimates of annual GDP growth indicate that GDP continued to grow in the G20 area in 2022 at 3.2 per cent, but at only half of the pace of 2021, which was at 6.3 per cent when economies were recovering from the initial impact of the COVID-19 pandemic. Among G20 countries, Saudi Arabia recorded the highest annual growth in 2022 at 8.7 per cent, followed by India at 6.7 per cent, Turkiye at 5.6 per cent, and Indonesia at 5.3 per cent. Japan recorded the lowest growth at 1.0 per cent.
Fibre2Fashion News Desk (NB)