G20 economies slow, eurozone contracts in quarter

Economic growth in the top G20 countries slowed to 0.6% in the second quarter of 2012 from 0.7% in the first quarter, with slow and weak growth set to continue, the OECD said yesterday. The Chinese economy picked up but output in the eurozone, Japan and South Korea slowed sharply. Britain and Italy also showed shrinking output data. Some emerging economies showed relatively resilient growth, the data showed. The easing for the G20 (Group of 20) area marks the third quarter running of slowing growth but “masks diverging patterns,” with a moderate slowing in the US and contraction in the eurozone, the Organisation for Economic Cooperation and Development said. Growth in China picked up to 1.8% from 1.6% and in Brazil to 0.4% from 0.1%, in Indonesia to 1.6% from 1.4% and in South Africa to 0.8% from 0.7%. Turkey achieved a turnaround from contraction of 0.1% to growth of 1.8%. In Japan growth fell to 0.2% from 1.3% and in South Korea top 0.3% from 0.9% output. In Australia, output also slowed sharply to 0.6% from 1.4%. The slowdown was less marked in the US where activity growth eased to 0.4% from 0.5%, in Germany to 0.3% from 0.5% and in India 0.8% from 1.1%. Output in France was flat at zero in both quarters. In Britain output contracted for the third quarter running, to minus 0.5% from minus 0.3%, and in Italy for the fourth quarter, which showed minus 0.8-percent growth in the last two quarters. For the whole of the 27-nation European Union, output contracted by 0.1% from a zero reading in the first quarter and for the 17 eurozone countries it shrank by 0.2% from growth of 0.4%. According to the OECD’s composite index of leading indicators slowing and weak growth is set to persist in the coming quarters in most leading economies. The eurozone looks set to achieve weak growth, led by France and Germany. Italy is set for a further slowdown, however. Data also points to a further slowdown in China, India and Russia. But Britain and Brazil look set for a pick up in growth, while Japan and US should still see above trend growth if slowing from previous quarters, said the OECD. In a separate report, the OECD warned Southeast Asian nations would also likely be buffeted by the slowdown in the eurozone and China. From gulf times.