The combined economic output of the Organisation for Economic Co-operation and Development (OECD), was 0.1% in the first three months of 2025 compared to the previous quarter, according to provisional estimates of the organisation. This compares to a 0.5% rise in the last three months of 2024.
“This figure represents a departure from the higher and relatively stable growth rates recorded in the OECD area over the past two years,” the OECD said in its report.
The overall GDP growth rate also slowed for the G7, the seven strongest economies in the world, from 0.4% to 0.1% for the same period.
Japan and the US saw their economies contract from 0.6% in both countries to -0.2% and -0.1%, respectively. Both countries saw their imports increasing significantly; however, in the United States, imports of goods increased sharply by 10.8% in Q1, compared with a contraction of 1.3% in Q4.
“The rise in US imports of goods, likely influenced by anticipated changes to trade tariffs, was the main drag on growth,” the report said.
Growth also slowed in Canada, from 0.6% to 0.4%.
Which countries saw their economy expanding?
In a quarterly comparison, UK GDP growth jumped from 0.1% to 0.7%, mainly driven by investments and exports of goods.
In the EU, growth increased marginally in Italy (from 0.2% to 0.3%), and it turned positive in Germany (0.2%) and France (0.1%).
Ireland recorded the highest quarter-on-quarter growth rate in Q1 (3.2%).
On the other hand, Slovenia recorded the largest fall in GDP in Q1 (‑0.8%), followed by Portugal (-0.5%).
Year-on-year, GDP growth in the OECD was 1.6% in Q1 2025, down from 1.9% in Q4 2024. Among G7 economies, Canada recorded the highest growth over the last four quarters (2.3%), followed by the United States (2.0%), while Germany recorded the largest fall (-0.2%).
Year-on-year, GDP growth in the OECD was 1.6% in Q1 2025, down from 1.9% in Q4 2024. In Europe, the French economy expanded by 0.8% compared to the previous year, the Italian GDP also grew by 0.6%, but the German output contracted by 0.2%.
What is in the cards for the global economy for 2025?
The OECD has recently published its global outlook, predicting slower growth, dragged down by trade disruptions and potential inflationary pressure. The organisation cut its global growth forecast by 0.2 percentage points to 3.1% for this year.
Europe’s economy is also facing “heightened uncertainty” and is set for a weaker-than-expected recovery. As for the eurozone, the OECD expects GDP in the bloc to expand by 1% in 2025 instead of the previously expected 1.3%.
Recent data from Eurostat shows that the combined growth of the 20 member states rose by 0.3% in both the euro area, compared with the previous quarter.
