G20 economies accelerate in third quarter of 2021, OECD says

Economic growth in the world's biggest 20 economies accelerated in the third quarter of this year, with India registering the strongest growth, according to the Organisation for Economic Co-operation and Development.

Gross domestic product of these countries grew 1.7 per cent during the third quarter, data shows.

India's GDP rose 12.7 per cent during the period after contracting 11.6 per cent in the second quarter as it emerges from pandemic-induced headwinds. GDP also rose in Saudi Arabia, growing 5.8 per cent in the third quarter compared to 1.1 per cent in the previous quarter, exceeding pre-pandemic levels.

Growth recovered in the past quarter in Canada, France and Italy, the report said.

In May, the group raised its forecast for global economic growth to 5.8 per cent in 2021, up from an earlier projection of 4.2 per cent, as Covid-19 vaccination campaigns in many advanced economies improved business conditions. But it later revised down its forecast to 5.7 per cent this year and 4.5 per cent in 2022, citing risks of an uneven recovery globally.

Economic output in many G20 economies also decelerated during the third quarter, the latest report said.

"While GDP for the G20 area as a whole exceeded its pre-pandemic level in the first quarter of 2021, half of the G20 economies, including all G7 economies except the US, remain below pre-pandemic levels," the Paris-based organisation said.

Growth in South Korea and China slowed to 0.3 per cent and 0.2 per cent, respectively. Meanwhile, growth in Australia (minus 1.9 per cent), South Africa (minus 1.5 per cent), Japan (minus 0.9 per cent), Indonesia (minus 0.6 per cent) and Mexico (minus 0.4 per cent) slipped into negative territory amid a slowdown in private consumption.

The OECD area also registered a decline with GDP growth slowing to 1.1 per cent in the third quarter compared to 1.7 per cent in the second quarter.

The OECD group of major world economies includes a number of countries in the eurozone, as well as the US, Japan and the UK.