In terms of the second quarter of 2017, most trading countries posted stronger growth rates than in the previous quarter. Real GDP grew faster in both the advanced economies (excluding the U.S.) and the emerging market economies, continuing a trend that began in early 2016.
Among the advanced economies, Canada posted the strongest second quarter growth rate of 4.5% (annualized), primarily due to improved commodity prices which benefited its resource exports.
The euro area economies expanded at a 2.6% annual rate in the second quarter, as virtually all 19-member countries reported positive economic growth. Japan’s economy advanced 2.5% in the second quarter, up from 1.2% growth in the first quarter.
The U.K. was the weakest performer in Q2, posting only 1.2% annual growth. China and India continued to post relatively strong economic growth rates in the second quarter, 7% and 4.1% respectively.
While the advanced economies had a reasonably strong start in the first half of this year, most economies are expected to soften a bit in the second half.
Growth in Japan and Eurozone will fall back to more sustainable levels in Q3 while the U.S. could see a temporary slowdown due to hurricane-related disruptions. Emerging market growth is also set to soften in synch with China’s mild deceleration.
The Major World Economies At A Glance: 2016-2018
(Real GDP, Annual % Rates of Change)
1-Yr%*
Latest*
2016
2017f
2018f
U.S.
2.2
3.0 Q2
1.6
2.3
2.7
Japan
1.4
2.5 Q2
1.0
1.3
1.1
Canada
3.7
4.5 Q2
1.4
3.1
2.5
Germ.
2.1
2.5 Q2
1.8
1.9
1.7
India
5.7
4.1 Q2
7.1
7.3
7.5
China
6.9
7.0 Q2
6.7
6.5
6.3
U.K.
1.7
1.2 Q2
2.0
1.5
1.2
Euro 19
2.3
2.6 Q2
1.7
2.0
1.8
World
3.0
3.3
3.6
