Overview of the Global Economic Slowdown
The Organisation for Economic Co-operation and Development (OCDE) reported a significant slowdown in its economic growth, advancing only 0.1% during the first quarter of 2025. This represents a four-decimal point decrease from the previous growth observed between October and December of the preceding year, according to the think tank for advanced economies.
Growth Ralentization in G7 Countries
The growth also decelerated within the G7, dropping from 0.4% to 0.1%. This resulted in an “uneven” economic landscape among the G7 nations, with mixed outcomes:
- Japan: The GDP contracted from -0.6% to -0.2%, with a notable 2.4% increase in goods imports compared to the previous -1.6% contraction.
- United States: The GDP fell from -0.1% to -0.6%, with goods imports surging by 10.8% from a previous -1.3% decline.
- Canada: The growth moderated from 0.6% to 0.4%, while
- United Kingdom: The GDP advanced considerably from 0.1% to 0.7%, driven primarily by increased investment and exports of goods.
Regional Economic Performance
Economic activity showed a slight rebound in Italy, rising from 0.2% to 0.3%, and turned positive in Germany (0.2%) and France (0.1%).
Among OCDE countries, Israel (0.8%), the United Kingdom (0.7%), and Poland & Chile (0.6%) demonstrated the most robust growth, whereas Eslovenia (-0.7%), Portugal & Denmark (-0.5%), and South Korea (-0.2%) experienced the weakest performances.
Spain’s growth rate in the first quarter decreased by one decimal point to 0.6%, remaining well above the OCDE average and three decimals higher than the eurozone growth rate.
Key Questions and Answers
- What caused the slowdown in global economic growth? The significant increase in US goods imports, likely influenced by anticipated changes in trade tariffs, was the primary factor hindering growth.
- Which countries experienced positive growth in Q1 2025? Israel (0.8%), the United Kingdom (0.7%), Poland, and Chile (0.6%) showed the most robust growth.
- Which countries had negative growth in Q1 2025? Eslovenia (-0.7%), Portugal & Denmark (-0.5%), and South Korea (-0.2%) experienced the weakest performances.
- How did Spain fare in comparison to the OCDE average and eurozone growth? Spain’s growth rate of 0.6% was above the OCDE average and three decimals higher than the eurozone growth rate.
