Real GDP in the OECD area increased by 0.9% in the second quarter of 2010 from the previous quarter, a stronger pace than previously estimated (0.7%). Gross fixed investment was the main contributor to the GDP increase, adding 0.4 percentage point to overall growth. The rise in investment was the first since early 2008, and the pace was the fastest since the first quarter of 2000.

Private and government consumption contributed 0.3 and 0.1 percentage point to overall growth respectively. The rebuilding of inventories continued, but at a slower pace than in previous quarters. The increase in domestic demand was partially offset by negative contributions from net exports, which reduced overall GDP growth by 0.2 percentage point.

Contributions to OECD real GDP growth


Among the seven major countries, the strong pace of GDP growth in Germany (to 2.2% in the second quarter) was driven by higher investment and net exports, which contributed 0.8 point each. In the United Kingdom, stronger GDP growth (up by 1.2%) reflected the positive contributions from private consumption and inventories. In Italy, foreign trade added 0.6 percentage point to overall GDP growth, more than offsetting lower domestic demand. In France, the increase in GDP growth from the previous quarter (to 0.7%) is entirely attributed to rebuilding inventories.

Growth in the United States, Japan and Canada was lower in comparison. The slower pace of the recovery in both the United States and Canada was due to negative contributions from foreign trade. Conversely, in Japan, GDP growth (0.4%) was principally due to a higher foreign trade surplus (0.3 percentage point).