OECD Economic Growth Stagnates in Early 2025
(MENAFN) The gross domestic product (GDP) within the Organization for Economic Cooperation and Development (OECD) inched upward by only 0.1 percent during the first quarter of 2025.
This marks a significant deceleration compared to the 0.5 percent expansion observed in the final quarter of 2024.
The OECD highlighted this change in a recent press statement, noting that the current rate of growth diverges from the higher and more consistent economic momentum seen across its member nations over the last two years.
A similar trend was evident in the Group of Seven (G7) advanced economies, where aggregate GDP growth also decreased, dipping from 0.4 percent to 0.1 percent between January and March.
Several key contributors to this decline were identified, with both Japan and the United States showing negative shifts in economic activity.
Japan’s economy experienced a downturn of 0.2 percent in the first quarter, reversing from a 0.6 percent gain in the previous period.
This contraction was primarily attributed to a 2.4 percent surge in import volumes, which weakened overall growth.
The United States similarly posted a contraction, with its GDP falling from a 0.6 percent expansion to a 0.1 percent decline.
A sharp 10.8 percent increase in imported goods during the quarter played a pivotal role.
According to the release, "The rise in US imports of goods, likely influenced by anticipated changes to trade tariffs, was the main drag on growth."
Canada's economic growth also moderated, slowing to 0.4 percent from 0.6 percent in the previous quarter.
In contrast, the United Kingdom witnessed a modest acceleration, with GDP rising to 0.7 percent from just 0.1 percent.
This improvement was largely fueled by stronger investment activity.
Elsewhere in the OECD, some member nations recorded notable contractions.
Slovenia saw the steepest decline with a GDP drop of 0.8 percent, followed by Portugal, which experienced a 0.5 percent decrease in economic output during the same timeframe.
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