OECD Economy Expands 0.5% in Second Quarter as Global Growth Shows Mixed Signals

Paris, Economic activity across the Organisation for Economic Co-operation and Development (OECD) area strengthened slightly during the second quarter of 2026, with aggregate GDP growth reaching 0.5%, according to the organisation’s latest provisional estimates.

The latest figure represents a modest improvement from the 0.4% expansion recorded in the first quarter. However, the overall result masks significant differences among individual economies, with some countries experiencing stronger momentum while others saw growth slow or remain unchanged.

Growth Recorded Across Most OECD Economies

The OECD said that data were available for 30 member economies for the second quarter. Twenty-seven countries recorded economic growth, although the pace varied considerably, while three economies reported no change in GDP.

The figures indicate that the OECD economy continued to expand despite differences in domestic demand, investment and government consumption across individual countries.

On a year-on-year basis, OECD-area GDP growth accelerated to 2.3% in the second quarter, compared with 1.7% in the first quarter.

G7 Growth Slows

The performance of the major G7 economies was more subdued.

Combined GDP growth for the G7 slowed to 0.3% in Q2 2026, compared with 0.4% in the previous quarter.

Several major economies contributed to this slowdown. Germany’s quarterly growth declined from 0.4% to 0.2%, while Italy’s expansion eased from 0.3% to 0.2%.

Japan also experienced slower growth, with GDP increasing 0.3%, compared with 0.5% in the first quarter.

The United Kingdom recorded 0.4% growth after expanding by 0.6% in Q1, while US GDP growth slowed to 0.4% from 0.5%.

Canada and France Move in the Opposite Direction

Not every G7 economy weakened.

Canada’s economy recorded a notable improvement, with quarterly GDP growth rising from zero in Q1 to 0.8% in Q2.

France also returned to growth. After contracting by 0.1% during the first quarter, French GDP increased by 0.2% in the second quarter.

These contrasting results demonstrate the uneven nature of economic activity among the world’s advanced economies.

Ireland and Israel Record Strong Expansion

Outside the G7, some OECD economies posted considerably stronger quarterly results.

Ireland recorded the fastest GDP growth at 3.9%, followed by Israel at 3.6% during the second quarter.

At the other end of the scale, GDP remained unchanged in Austria, Belgium and Chile.

The wide range of results highlights how economic conditions continued to differ significantly across OECD member economies during the quarter.

United States Remains Strongest G7 Economy on Annual Basis

Although US quarterly growth slowed, the country continued to record the strongest annual GDP performance among the G7 economies.

US GDP was 2.1% higher than a year earlier in Q2 2026.

Japan recorded the lowest annual growth among the G7, at 0.5%, showing the substantial differences in economic momentum within the group.

What the Latest Data Suggest

The OECD figures point to an economy that is still expanding, but not uniformly.

The rise in aggregate OECD growth from 0.4% to 0.5% suggests a modest improvement in the second quarter. At the same time, slower growth across several major G7 economies indicates that the broader recovery remains uneven.

The latest figures will be closely watched by governments, central banks, businesses and investors as they assess economic conditions for the remainder of 2026.

The OECD is scheduled to publish its next quarterly GDP growth release in November 2026, providing another update on whether the recent improvement in overall OECD growth continues.

Source: Organisation for Economic Co-operation and Development (OECD), Statistical Release, August 24, 2026.