Economic growth hit the skids in the fourth quarter of 2022, the OECD is reporting.
For the G20, GDP growth dropped abruptly to 0.3% in the fourth quarter from 1.4% in the third quarter, on a quarter over quarter basis, based on provisional estimates, the OECD said.
The slump was primarily driven by China, which saw growth plunge to zero in the fourth quarter, from 3.9% in Q3.
The turmoil in China came after it scrapped its zero-Covid policy in the fourth quarter, resulting in a surge of infections that impacted the economy, the OECD said.
Additionally, GDP growth either slowed, or turned negative, in most other G20 countries in the fourth quarter, the Paris-based group said.
For Canada, Europe, the U.K. and Japan, growth was flat in the fourth quarter, the OECD noted.
“This slowdown ended a volatile year for the G20 area, in which GDP growth moved from 0.7% in [the first quarter] to minus 0.2% in the second quarter, before rising and falling again in the third and fourth quarters,” it said.
Initial estimates of annual growth suggest that annual GDP growth for the G20 overall dropped to 3.2% in 2022 from 6.3% in 2021.