14 Jun 2023 - Gross domestic product (GDP) in the G20 area grew by 0.9% quarter-on-quarter in the first quarter of 2023 according to provisional estimates, up from 0.4% in the previous quarter (Figure 1).
This acceleration in the G20 area in Q1 2023 mainly reflected the reopening of the economy in China, where GDP growth picked up to 2.2% compared with 0.6% in the fourth quarter of 2022. The acceleration was also driven by higher growth in India, 1 where GDP rose by 1.9% in Q1 2023, up from 1.0% in Q4 2022. In Mexico, GDP growth reached 1.0% in Q1 (compared with 0.6% in Q4) and in Japan it reached 0.7% (compared with 0.1%). Several economies returned to growth after contracting in the fourth quarter of 2022: in Brazil GDP rose by 1.9% in Q1 after contracting by 0.1% in Q4, while in South Africa and Korea, GDP grew by 0.4% and 0.3% respectively after contracting by 1.1% and 0.4%. Growth also recovered in Canada, France and Italy, as noted in the latest OECD GDP growth release.
Despite the acceleration in growth in the G20 area as a whole, Germany,2 entered recession, with GDP continuing to contract (minus 0.3% in Q1 2023, following minus 0.4% in Q4 2022) as decreases in government spending and private consumption weighed heavily on the economy, removing 1.1 and 0.6 percentage points respectively from growth. GDP also contracted in Saudi Arabia (minus 1.4% in Q1) for the first time in two years, mainly reflecting a decrease in oil activities. GDP growth slowed in Indonesia (to 0.7% in Q1 compared with 2.2% in the previous quarter), and, to a lesser extent, in Australia, Türkiye and the United States. In the United Kingdom GDP growth remained at 0.1% in Q1, the same as the previous quarter.
In Q1 2023, GDP in the G20 area exceeded its pre-pandemic (Q4 2019) level by 7.8% (Figure 2). However, in the United Kingdom and Germany, GDP remained below its pre-pandemic levels (by 0.5% in both countries).
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1. China’s nominal GDP represented 23.2% of G20 GDP in 2021 and India’s represented 8.3% (see Annex table 1 in the methodological note).
2. In the OECD GDP growth release issued on 23 May 2023, Germany’s GDP growth was flat in Q1 2023 (now revised to minus 0.3%); Japan’s GDP growth was 0.4% in Q1 2023 (now revised to 0.7%). GDP growth in the OECD area in Q1 2023 remained unchanged, at 0.4%.