OECD economies’ growth sputters in first quarter

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White HouseGrowth of real gross domestic product (GDP) in the Organization for Economic Cooperation and Development (OECD) slowed to 0.3% in the first quarter of 2015, down from 0.5% in the fourth quarter of 2014, according to provisional estimates.

In a new release, OECD said that among the Major Seven economies, growth slowed most significantly in the United States to 0.1% and in Germany to 0.3%, down from 0.5% and 0.7%, respectively, in the fourth quarter of 2014. Growth also decelerated in the United Kingdom, to 0.3%, down from 0.6% in the previous quarter.

On the other hand, GDP growth picked up to 0.6% in the first quarter of 2015 in France, following flat growth in the previous quarter. In Japan, GDP growth also accelerated to 0.6%, up from 0.3% in the previous quarter. In Italy, real GDP grew by 0.3% for the first time since the third quarter of 2013.

In the European Union, GDP growth was stable at 0.4% in the first quarter of 2015, while the euro area continued to show marginal improvements (0.4%, up from 0.2% and 0.3%, respectively, in the third and fourth quarters of 2014).

Year-on-year GDP growth for the OECD area increased marginally to 1.9% in the first quarter of 2015, from 1.8% in the previous quarter. Among the Major Seven economies, the United States (3%) and the United Kingdom (2.4%) continued to record the highest growth rates in the first quarter of 2015, compared with the same quarter of 2014. Italy registered flat growth for the first time following 13 consecutive quarters of contracting annual growth, while in Japan GDP contracted by minus 1.4%.

The OECD is a multidisciplinary international body made up of 30 member countries that offers a structure and forum for governments to consult and cooperate with each other in order to develop and refine economic and social policy.

Its members are Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Norway, Poland, Portugal, Russia, Spain, and Sweden.

Photo: Matt H. Wade