Gross domestic product (GDP) in the G20 area grew by only 0.3% quarter-on-quarter in the fourth quarter of 2022 according to provisional estimates, compared with 1.4% in the previous quarter. This slowdown ended a volatile year for the G20 area, in which GDP growth moved from 0.7% in Q1 2022 to minus 0.2% in the second quarter, before rising and falling again in the third and fourth quarters.

The downturn in the G20 area in Q4 2022 and the previous volatility in 2022 mainly reflected trends in China, which accounted for almost one-quarter of the G20’s total GDP. Growth in China fell from 3.9% in Q3 2022 to zero in Q4 as the easing of COVID-19 restrictions was accompanied by a rapid spread of infections which affected various sectors of the economy. GDP growth also slowed or turned negative in most other G20 countries in Q4 2022. In South Africa, GDP contracted by 1.3%, following growth of 1.8% in the third quarter. GDP also contracted in Germany and Korea (minus 0.4% in both countries), Brazil (minus 0.2%) and Italy (minus 0.1%).On the other hand, GDP grew comparatively fast in Indonesia (2.2%) and Saudi Arabia (1.3%). In Türkiye GDP grew by 0.9% after a slight contraction in Q3 2022. In the euro area, Canada, Japan and the United Kingdom, growth was flat in the fourth quarter.

Initial estimates of annual GDP growth indicate that GDP continued to grow in the G20 area in 2022 (3.2%), but at only half of the pace of 2021 (6.3%) when economies were recovering from the initial impact of the COVID-19 pandemic. Among G20 countries, Saudi Arabia recorded the highest annual growth in 2022 (8.7%), followed by India (6.7%), Türkiye (5.6%) and Indonesia (5.3%). Japan recorded the lowest growth (1.0%).