OECD GDP growth rebounds to 0.4% in Q2, up from 0.2%

ISTANBUL

Gross domestic product (GDP) in the OECD area rose by 0.4% in the second quarter of 2025, up from 0.2% in the previous quarter, with the US as the leading contributor.

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

G7 economies saw a similar acceleration, with GDP growth rising from 0.1% to 0.4%.

The US contributed most to the OECD’s economic growth in the April-June period of 2025, with GDP growth rebounding to 0.7% after a 0.1% contraction in the previous 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," it added.

In contrast, GDP growth in Canada stalled after rising by 0.5% in the first quarter. In the UK, GDP growth slowed from 0.7% to 0.3%, owing primarily to a 1.1% contraction in investments in the second quarter, following 2.0% growth in the first quarter.

Germany and Italy both recorded negative growth, falling from 0.3% to -0.3% and -0.1%, respectively, with Germany's contraction driven primarily by falling goods exports.

"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," according to the OECD report.

Ireland recorded the sharpest slowdown, with GDP contracting by 1%, following a significant expansion of 7.4%, largely driven by increased exports to the US.

By contrast, Denmark experienced a notable turnaround, shifting from a minus 1.3% to a 1.3% growth rate.

On a year-on-year basis, OECD GDP growth remained steady at 1.7%, with the US posting the highest increase at 2% and Germany the lowest at 0.2%.