Growth Diverges: OECD Slows as Emerging Markets Accelerate
Quarterly GDP data show a widening gap between mature and developing economies.
The latest quarter-on-quarter GDP readings tell a tale of two worlds: advanced economies are decelerating under the weight of higher-for-longer rates, while several large emerging markets are picking up speed.
Among OECD members, quarterly growth ranged from a brisk 3.7% in Iceland to a sharp contraction in Ireland, whose figures are distorted by multinational activity. The median advanced economy expanded by less than half a percent.
Emerging momentum
India, Indonesia and parts of Latin America posted firmer prints, helped by domestic demand, easing inflation and, in some cases, a weaker dollar that lightened debt-service burdens.
The rate-cut dividend
Economies that began easing earlier are now reaping the reward in stronger activity. The divergence is a reminder that the global cycle is no longer moving in unison the way it did during the pandemic shock.
Written by Aria Bennett, Global Economy. Figures are aggregated from official sources on ECONOMY and may be revised. Information only — not financial advice.