Economic output for the G20 turned negative in the second quarter, according to new data from the Organization for Economic Cooperation and Development (OECD).
In the second quarter, GDP for the G20 countries fell 0.4% on a quarter-over-quarter basis, reversing a 0.5% increase in the first quarter, the Paris-based group reported.
The OECD said the slowdown in the G20 was primarily driven by a “sharp contraction” in China, where GDP fell by 2.6% quarter-on-quarter after rising by 1.4% in Q1.
The pullback in China “reflected the lockdowns that were put in place to contain Covid-19 outbreaks,” it noted.
Additionally, GDP contracted in India (1.4%), South Africa (by 0.7%) and, to a lesser extent, the U.S. and the UK, which both saw output decline by 0.1%, the OECD reported.
By contrast, Canada saw growth of 0.8% in the quarter, and several other markets — including Japan, Brazil and Italy — saw growth accelerate in the second quarter.
While GDP dropped in the G20, the OECD area overall still managed 0.4% growth in the second quarter, the group noted.