OECD Posts 0.4 Percent GDP Growth in Q2

(MENAFN) Gross domestic product (GDP) across the OECD area expanded by 0.4% in the second quarter of 2025, doubling the previous quarter’s 0.2% increase, driven primarily by a strong performance from the United States.

“This marks a return to the relatively stable growth rates of around 0.4% to 0.5% observed in preceding quarters,” the OECD reported on Wednesday.

G7 nations mirrored this upward trend, with GDP growth jumping from 0.1% to 0.4% during the same period.

The U.S. led this surge, rebounding to a 0.7% GDP growth rate in Q2 after contracting by 0.1% in the first quarter.

“Among the other G7 economies, France and Japan recorded more modest improvements, with GDP growth rising from 0.1% to 0.3% in both countries,” the OECD added.

Meanwhile, Canada’s economic momentum stalled after a 0.5% gain in Q1. The UK’s GDP growth decelerated sharply from 0.7% to 0.3%, weighed down by a 1.1% drop in investments in Q2 following a 2.0% rise earlier in the year.

Germany and Italy slipped into contraction, with Germany’s GDP falling from 0.3% to -0.3%, largely due to declining goods exports, while Italy’s economy shrank by 0.1%.

“Across the rest of the OECD, the situation was similarly mixed. Of the 23 countries with available data, 13 recorded higher growth rates compared with Q1 2025,” the OECD highlighted.

Ireland experienced the sharpest slowdown, with GDP shrinking by 1% after an earlier surge of 7.4%, which had been largely propelled by increased exports to the U.S.

Conversely, Denmark made a strong recovery, turning around from a -1.3% decline to 1.3% growth.

On an annual basis, OECD GDP growth held steady at 1.7%, with the U.S. posting the fastest growth at 2%, while Germany lagged with the lowest at 0.2%.

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