GDP in the G20 area rose by 1.4% between the third and fourth quarters of 2021, according to provisional estimates, down from the 1.9% increase recorded between the second and third quarters.

The slowdown in the G20 area in the fourth quarter (Q4) of 2021 mainly reflects decelerating growth in India,[1] where GDP increased by 1.8% quarter-on-quarter after rising by 13.7% in the third quarter (Q3). It also reflects slower quarter-on-quarter growth in the European Union (EU) where GDP rose by 0.4% in Q4 2021, down from 2.2% in Q3. Germany,the EU’s largest economy, saw a fall in GDP of 0.3% in Q4 and was the only G20 country to record a contraction.[2]GDP growth also slowed in Saudi Arabia (to 1.6% in Q4, compared with 5.7% in Q3) and Turkey (to 1.5%, compared with 2.8%).

Despite the trend for the G20 area as a whole, many G20 countries recorded stronger growth in Q4 2021 than in Q3. In the United States quarter-on-quarter GDP growth rose to 1.7%, from 0.6% in the previous quarter, and in China it rose to 1.6%, from 0.7%. GDP growth also rose in Indonesia, from a weak 0.1% in Q3 to a robust 3.9% in Q4, with GDP exceeding its pre-pandemic level for the first time (by 2.9%). In Australia GDP recovered from a Q3 drop of 1.9%, increasing by 3.4% in Q4, while in South Africa GDP rose by 1.2% in Q4 (from minus 1.7% in Q3) and in Brazil it rose by 0.5% (from minus 0.1%). Mexico recorded no growth in Q4 2021 after a contraction of 0.7% in the previous quarter.

Looking back at growth for 2021 as a whole, according to initial estimates, GDP in the G20 area increased by 6.1% following the 3.2% fall recorded in 2020 due to the COVID-19 pandemic. Among G20 countries, Turkey recorded the highest growth in 2021 (11.0%), followed by India (8.3%) and China (8.1%), while Japan recorded the lowest growth (1.6%).