OECD GDP growth slows to 0.3% in Q4 amid mixed trends

The gross domestic product (GDP) across the Organisation for Economic Co-operation and Development (OECD) countries edged down to 0.3 per cent quarter on quarter in the fourth quarter (Q4) of 2025 from 0.4 per cent in the preceding quarter, reflecting uneven momentum among the 24 member countries with available data, according to provisional estimates. Ten countries recorded stronger growth and two maintained stable performance, while seven experienced slower expansion and five reported contractions.

Within the G7 grouping, Germany and Italy posted improved growth of 0.3 per cent each, up from 0.0 per cent and 0.2 per cent respectively in Q3, supported by higher household and government consumption. Italy also benefited from increased investment activity. In contrast, France’s growth moderated to 0.2 per cent from 0.5 per cent as inventory drawdowns continued to weigh on output, OECD said in a press release.

Canada’s economy contracted by 0.1 per cent following 0.6 per cent growth in the previous quarter, while the United Kingdom recorded unchanged growth of 0.1 per cent. Japan returned to expansion with 0.1 per cent growth after a 0.7 per cent contraction in Q3, driven primarily by stronger investment.

OECD GDP growth eased to 0.3 per cent in Q4 2025 from 0.4 per cent as country performances diverged.
Germany and Italy strengthened, while France slowed and Canada contracted.
Japan returned to modest growth and the UK remained stable.
Lithuania led expansion among other members.
Annual OECD growth rose to 1.7 per cent in 2025, with Ireland recording the strongest performance.

Among other OECD economies, Lithuania led quarterly growth with a 1.7 per cent increase, followed by Israel and Poland at 1.0 per cent each. Conversely, Ireland and Korea reported declines of 0.6 per cent and 0.3 per cent respectively.

Annual estimates indicated that OECD GDP growth strengthened to 1.7 per cent in 2025, compared with 1.2 per cent in 2024 and 1.1 per cent in 2023. Growth performance diverged across countries, with half of the reporting economies experiencing acceleration and the remainder recording slower expansion.

Ireland posted the strongest annual growth at 12.6 per cent, while all OECD countries with available data registered positive growth in 2025, contrasting with the previous year when seven economies contracted.

Fibre2Fashion News Desk (SG)