GDP in the OECD area declines 2.1 per cent in Q1 2009

26 May 2009

The Organisation for Economic Cooperation (OECD) group of rich countries saw their gross domestic product (GDP) fall by 2.1 per cent in the first quarter of 2009, the largest fall since OECD records began in 1960, followed by a fall of 2.0 per cent in the previous quarter.

The grouping of 30 industrialised member states said in a statement that the estimates were preliminary, but the fall of 2.1 per cent in GDP in the first quarter was followed by a fall of 2.0 per cent in the previous quarter.

The US GDP fell by 1.6 per cent in the first quarter of 2009, the same rate as in the previous quarter while Japan's GDP declined by 4.0 per cent, following a 3.8 per cent decrease in the previous quarter.

GDP in the euro area was also down 2.5 per cent, following a 1.6 per cent fall in the previous quarter.

It said that of the major seven countries, comprising of the US, the UK, Canada, France Germany Italy and Japan, only in France, did the rate of contraction ease in the first quarter as it fell 1.2 per cent.

Compared with the same quarter a year earlier, all the major seven economies recorded a fall in GDP, and a marked deterioration on the previous quarter's year-on-year figures.

The US contributed 0.9 per cent to the total OECD fall of 4.2 per cent between the first quarter of 2008 and the first quarter of 2009 while Japan contributed 1.0 per cent, the euro area (13 countries) 1.3 per cent, and the remaining countries 1.0 per cent.

The OECD comprises of 30 member countries, which are Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Spain, Sweden, Switzerland, Turkey, UK and US.

The euro area comprises of 13 countries, which are Austria, Belgium, Finland, France, Germany, Greece, Italy, Ireland, Luxembourg, Netherlands, Portugal, SlovakRepublic and Spain.

The euro area covers the euro area of 13 countries plus Cyprus, Malta and Slovenia while the European Union covers the euro area plus Bulgaria, Czech Republic.