OECD economies slowed growth in the second quarter

The OECD (Organization for Economic Co-operation and Development) economy slowed growth in the second quarter. GDP (gross domestic product) of the organization’s “rich” countries rose 0.4% between April and June, a tenth less than between January and March, always year-on-year.

These data confirm “a persistent pattern of moderate growth observed after the first quarter of 2022,” as the institute itself indicated this Monday.

There are several reasons that justify this slowdown, which among the main eurozone countries is more pronounced in Germany, whose activity is already stagnant, and less so in Spain. On the one hand, the German “locomotive” and mainly its industry has been more directly affected by the Russian invasion of Ukraine and the inflationary crisis it has exacerbated, completely disrupting international energy markets.

Spain, on the other hand, achieved a later recovery after the pandemic, as it was one of the developed economies most affected by the heavy weight of services and specifically tourism in its GDP. A sector whose most intensive recovery phase did not occur until the summer season.

Thus, the OECD emphasizes that the GDP level of our country It was 4-tenths higher than at the end of the second quarter before the COVID shock, while the group of countries of the organization did it with 5.1 points, Italy with 2.2 whole numbers, France with 1.7 and Germany with barely 0.2 tenths. Among the lagging economies, UK GDP is below pre-pandemic levels.

The general context is one of uncertainty, especially as inflation hits low-income households and the double whammy of central banks raising interest rates, the very thing they intend to control.

In recent days, the meeting in Jackson Hole in the United States, which brings together the main monetary policy leaders every summer, concluded that funding costs will remain high “as long as necessary” until the price rises moderately. A strategy that envisages a blow to consumption, investment by companies and, therefore, the threat of job destruction.

Source: El Diario





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