PARIS / RankWire.AI / – Economic expansion across OECD nations experienced a modest uptick in the second quarter of 2026, with gross domestic product increasing by 0.5% compared to the previous quarter. This follows the 0.4% growth recorded in the first quarter, based on provisional estimates released on August 24. The Organisation for Economic Co-operation and Development indicated that 27 out of 30 countries with available data saw growth during this period, while the remaining three economies saw no change in their GDP levels.
These recent figures point to a broad-based expansion across the OECD, although the pace of growth varied significantly among member countries. Ireland experienced the highest quarter-on-quarter increase at 3.9%, followed by Israel at 3.6%. In contrast, Austria, Belgium, and Chile reported no change in their economic output during the quarter. On an annual basis, the overall regional performance also improved, with OECD GDP being 2.3% higher than its level a year earlier, which compares to an annual growth rate of 1.7% in the first quarter.
The performance of the G7 economies was comparatively weaker than the broader OECD results. The combined GDP growth for the G7 slowed to 0.3% in the second quarter from 0.4% in the first quarter. Germany and Italy each grew by 0.2%, while Japan expanded by 0.3%. The United Kingdom and the United States both recorded quarterly growth of 0.4%. Canada saw a notable acceleration to 0.8% after experiencing no growth in the previous quarter, and France returned to a 0.2% growth rate following a 0.1% contraction.
G7 Growth Loses Momentum as Canada Speeds Up
The deceleration among five G7 economies was driven by weaker activity in several key components of output. In Japan, private consumption remained flat, inventories declined, and investment decreased. The United Kingdom experienced softer private consumption alongside reduced government expenditure. In the United States, weaker export growth, inventory reductions, and lower government spending contributed to a slowdown in quarterly expansion. Despite this, the overall OECD area saw slightly faster growth, highlighting a divergence within the larger economic group.
The most pronounced differences were observed in Canada and France. Canada’s economy shifted from zero growth in the first quarter to a growth rate of 0.8% in the second. Meanwhile, France reversed a 0.1% contraction in the first quarter and expanded by 0.2%. Additionally, Ireland and Israel posted significantly stronger quarterly gains compared to other countries within the available OECD sample. Conversely, Austria, Belgium, and Chile experienced no change in GDP during this period.
OECD’s Annual Growth Rate Improves to 2.3%
On an annual basis, the second-quarter figures reveal a broader acceleration across the OECD, with GDP being 2.3% higher than in the same quarter of 2025, compared to the 1.7% growth rate seen in the first quarter. Among G7 nations, the United States registered the strongest annual growth at 2.1%, while Japan experienced the weakest at just 0.5%. This annual comparison provides an alternative measure of economic performance, distinct from the quarter-on-quarter changes, offering a clearer picture of overall momentum.
The OECD has classified these second-quarter estimates as provisional, as they include data from 30 member countries where second-quarter GDP figures were available at the time of release. The organization plans to publish its next quarterly GDP growth report on November 19, 2026. For now, the August data remains the latest consolidated assessment, indicating a quicker overall expansion despite the slower growth trend among the G7 countries.