Economic growth across the G20 slowed in the second quarter of 2026. OECD data show the group’s combined gross domestic product expanded by 3.1% year on year, down from 3.3% in the first quarter. That marks the weakest pace since the second quarter of 2024.
The picture across the bloc remained uneven. Of the 17 countries covered in the analysis, growth accelerated in eight, weakened in seven and was unchanged in two. The G20 consists of 19 countries plus the European Union as a collective member, but data for Argentina are not yet available, while Russia has not been included in OECD calculations since the end of 2021.
The strongest annual growth rates in the second quarter were recorded in India at 8.1%, Indonesia at 5.3% and China at 4.3%. Even so, all three posted some slowdown compared with the previous quarter. The weakest performances in the G20 came from Saudi Arabia, where GDP fell 4.3%, as well as France, which grew 0.5%, and Japan, which expanded 0.7%.
The sharpest improvement in growth momentum was seen in Mexico, where annual GDP growth reached 1.9%, up from 0.5% in the previous quarter. In Canada, the figure rose to 1.1% from 0.1%, while in Germany it increased to 1% from 0.7%. By contrast, several major economies lost momentum. South Africa’s growth slowed from 1.9% to 0.9%, China’s from 5% to 4.3%, the United States’ from 2.7% to 2.1%, and Australia’s from 2.5% to 2.1%.
In South Korea and Turkey, second-quarter GDP growth was unchanged at 3.8% and 2.6%, respectively. Saudi Arabia was the only G20 economy to move from growth in the first quarter into contraction. According to the OECD assessment, that was mainly due to reduced activity in the oil sector amid developments in the Middle East.
In its September report, the IMF said the conflict is worsening growth prospects for most G20 economies. Disruptions to energy supplies are hitting net importers hardest, especially European Union countries. Fuel shortages are driving up oil and gas prices, adding to inflation and restraining both consumer and business activity across the region.
At the same time, the G20 economy is receiving some support from demand for high-tech products tied to the development of artificial intelligence technologies. Rising purchases of semiconductors and other technology equipment are boosting export revenues for advanced economies that are major suppliers of those products.
