OECD says economic recovery remains slow as six countries shrink
OECD GDP grew 0.4% in the first quarter of 2026, with 20 economies expanding, two unchanged and six contracting.
The Organisation for Economic Co-operation and Development (OECD) has released preliminary estimates showing that gross domestic product (GDP) across OECD countries grew slightly by 0.4% in the first quarter of 2026, up from 0.2% in the previous quarter.
The figures point to mixed economic conditions across the 28 member countries for which data were available. In the first quarter of 2026, 20 economies expanded, though at varying rates, while two were unchanged and six contracted.
G7 growth led by UK and US
Among G7 economies, the United Kingdom and the United States posted stronger growth.
The UK economy expanded from 0.2% in the fourth quarter of 2025 to 0.6% in the first quarter of 2026, supported by higher household and government consumption.
The US economy grew from 0.1% to 0.5%, driven by a recovery in government spending, exports and investment.
Japan also strengthened, with growth rising from 0.2% to 0.5%, while Germany edged up from 0.2% to 0.3%. Canada rebounded to 0.4% after contracting by 0.2% in the previous quarter.
However, France recorded no growth in the first quarter after expanding by 0.2% in the previous quarter, as consumption, investment and exports declined. Italy slowed to 0.2%, down from 0.3%, due to weaker domestic demand.
South Korea records strongest OECD growth
Among other OECD economies for which data were available, South Korea recorded the strongest growth at 1.7%, followed by Finland at 0.9%.
Hungary and Switzerland both grew by 0.8%.
The steepest contraction was seen in Ireland, where GDP fell by 2.0%, followed by Israel and Mexico, both of which contracted by 0.8%.
Annual growth edges higher
On a year-on-year basis, OECD GDP growth in the first quarter of 2026 edged up to 1.8%, from 1.7% in the previous quarter.
Among G7 economies, the United States remained the fastest-growing at 2.7%, while Germany recorded the weakest growth at just 0.3%.
The OECD (Organisation for Economic Co-operation and Development) is an intergovernmental organization with 38 member countries. Headquartered in Paris, it provides economic data, research, and policy recommendations to promote global prosperity, sustainable development, and fair trade. The majority of OECD members are generally regarded as developed countries, with high-income economies, and a very high Human Development Index.
