PARIS / RankWire.AI / – In the second quarter of 2026, the OECD area experienced a modest uptick in economic activity, with most member countries reporting growth. The gross domestic product (GDP) increased by 0.5% compared to the previous quarter, surpassing the 0.4% rise seen in the first three months. The Organisation for Economic Co-operation and Development noted that 27 out of 30 countries with available data saw expansion, while three nations experienced no change in quarterly output.
Ireland led the list with the strongest quarterly growth, with GDP climbing 3.9%. Close behind was Israel, which grew by 3.6%, both figures significantly above the OECD average. Meanwhile, Austria, Belgium, and Chile reported stagnation in economic output during the same period. Looking at the wider OECD region, GDP was up 2.3% year-on-year, an acceleration from the 1.7% annual growth observed in the first quarter.
In contrast, the G7 major economies experienced a slight slowdown. The combined GDP of G7 countries grew by 0.3% in the second quarter, down from 0.4% in the previous quarter. Germany and Italy each expanded by 0.2%, Japan grew by 0.3%, while the United Kingdom and United States posted growth of 0.4%. Canada saw a more notable increase of 0.8%, and France rebounded with a 0.2% expansion, returning to growth after a decline.
Mixed Outcomes for G7 Economies in Q2
Several key economies experienced slower growth, influenced by shifts in domestic demand and trade activities during the quarter. Japan’s private consumption remained flat, with declines in inventories and investment. In the United Kingdom, weaker private consumption coupled with reduced government spending slowed quarterly growth. The United States also faced diminished export performance, inventory reductions, and lower government expenditure. These factors collectively contributed to the slower overall G7 growth rate.
Canada achieved the most significant quarterly gain among G7 nations, moving from zero growth in the first quarter to 0.8%. France also saw improvements after contracting 0.1% in the previous quarter, with its economy expanding by 0.2% in Q2. These results stand in contrast to Ireland and Israel, which experienced faster growth, while Austria, Belgium, and Chile reported no change from the previous three months.
OECD Annual Growth Reaches 2.3%
On an annual basis, the broader OECD group displayed a quicker growth pace, with GDP rising 2.3% over the second quarter of 2025, compared to a 1.7% increase in the first quarter. Among the G7 countries, the United States registered the strongest year-on-year growth at 2.1%, whereas Japan experienced the smallest annual rise at 0.5%.
The OECD characterized these second-quarter figures as provisional, with the data based on countries that supplied GDP information. Its August 24 report covered 30 member economies and included both quarterly and yearly comparisons. The organization is scheduled to release its next quarterly GDP update on November 19, 2026. Despite the softer performance among G7 nations, the overall OECD growth indicators reflect a slightly stronger economic momentum across the entire area.
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