G20 GDP growth accelerates to 0.9% in Q2 2025: OECD

The gross domestic product (GDP) in the G20 area grew by 0.9 per cent in the second quarter (Q2) of 2025, up from 0.7 per cent in the previous quarter, according to provisional estimates by the Organisation for Economic Co-operation and Development (OECD). While growth picked up slightly, it remained within the relatively narrow range of 0.7 per cent to 0.9 per cent recorded in preceding quarters. However, the picture was mixed among G20 countries.

Growth rebounded strongly in the United States (from -0.1 per cent to 0.8 per cent) and in South Korea (from -0.2 per cent to 0.7 per cent) in Q2 2025. It also increased sharply in Turkiye (from 0.7 per cent to 1.6 per cent), South Africa (from 0.1 per cent to 0.8 per cent), and Saudi Arabia (from 1.1 per cent to 1.7 per cent).

Increases were also recorded in Japan (from 0.1 per cent to 0.5 per cent), Australia and Mexico (from 0.3 per cent to 0.6 per cent in both countries), France (from 0.1 per cent to 0.3 per cent), and Indonesia (from 1.2 per cent to 1.3 per cent), OECD said in a press release.

G20 GDP grew 0.9 per cent in Q2 2025, up from 0.7 per cent in Q1, according to OECD.
The US, Korea, Turkiye, South Africa and Saudi Arabia rebounded strongly, while Japan, Australia, Mexico, France and Indonesia saw moderate gains.
Canada, Germany and Italy contracted, and growth slowed in Brazil, the UK, India and China.
YoY, G20 GDP rose 3.5 per cent, led by India at 7.3 per cent.

By contrast, the remaining G20 countries experienced either contractions or slower growth in Q2 compared with Q1 2025.

GDP contracted in Canada (by 0.4 per cent), Germany (by 0.3 per cent) and Italy (by 0.1 per cent). Growth slowed sharply in Brazil (from 1.3 per cent to 0.4 per cent) and, to a lesser extent, in the United Kingdom (from 0.7 per cent to 0.3 per cent), India (from 2 per cent to 1.7 per cent), and China (from 1.2 per cent to 1.1 per cent).

G20 real GDP grew by 3.3 per cent year-over-year (YoY) in Q1 2025, accelerating slightly to 3.5 per cent YoY in Q2 2025. Among G20 economies, India recorded the highest year-on-year growth rate at 7.3 per cent, followed by China (5.2 per cent) and Indonesia (5.1 per cent), while Germany recorded the lowest (0.2 per cent).

Fibre2Fashion News Desk (SG)