Global Economic Overview: Q3 2024 GDP Growth Trends

Economic growth in the third quarter of 2024 displayed diverse trends across key nations, influenced by varying domestic and international factors. Below is a summary of notable GDP growth figures and underlying drivers for major economies.

China's GDP grew by 4.6% year-on-year in Q3, with a quarter-on-quarter increase of 0.9%, according to the National Bureau of Statistics. Key sectors such as agriculture, forestry, fishing, and hunting grew by 3.5%, while industrial production surged by 5.1%, bolstered by a 5.0% rise in manufacturing. For the first three quarters of 2024, China's GDP expanded by 4.8%, showcasing resilience across agriculture (3.6%), industrial sectors (5.7%), and wholesale and retail trade (5.4%).

The U.S. economy expanded at an annualized rate of 2.8% in Q3, according to the Commerce Department. While slower than Q2’s 3% growth, this marks robust activity fueled by a 3.7% rise in consumer spending, the largest increase since early 2023. Exports and federal government expenditures also contributed to growth. The core PCE price index rose by 2.2%, aligning with the Federal Reserve’s inflation target.

The UK's GDP grew 0.1% quarter-on-quarter, a significant slowdown from Q2’s 0.5% growth, according to the Office for National Statistics. Sectoral analysis revealed stagnant services, a 1% contraction in manufacturing, and a 0.1% rise in construction.

The Dutch Central Bureau of Statistics recently announced that the Netherlands' GDP grew by 0.8% quarter-on-quarter in Q3 2024 and 1.7% year-on-year, based on current data. The growth was primarily driven by household consumption and government spending, both of which increased by 0.8% compared to the previous quarter. Household consumption focused mainly on clothing, home goods, and energy, while government spending saw notable increases in healthcare and public administration.

The National Statistical Office of India released data showing that in the three months ending in September, India's Gross Domestic Product (GDP) grew by 5.4% year-on-year. This is the worst figure since the fourth quarter of 2022 and is far below the Reserve Bank of India's expectation of 7%. In contrast, the growth rate in the previous quarter was 6.7%. It is reported that the main reasons for the decline in India's economic growth in the third quarter were the weakness in manufacturing, electricity and natural gas production, and the mining industry was also contracting. 

Thailand's GDP grew by 3.0% year-on-year in Q3, supported by public investment expansion and steady growth in exports of goods and services. Government consumption spending also positively influenced the economy. The National Economic and Social Development Council forecasts 2.6% annual growth for 2024, driven by public investment, private demand, tourism recovery, and export growth. 

Indonesia's economy expanded by 4.95% year-on-year in Q3, slightly below Q2’s growth rate. In the first three quarters of 2024, GDP grew by 5.03%, reflecting consistent but moderated performance. Nominal GDP for Q3 reached IDR 5,638.89 trillion, with a 6.49% year-on-year increase.  

Japan: Modest Growth Despite Export Challenges  

Japan’s economy grew at an annualized rate of 0.9% in Q3, matching forecasts for 0.2% quarter-on-quarter growth. However, net exports contributed negatively to GDP by 0.4 percentage points. Despite the modest growth, currency pressures continued as the yen weakened against the dollar.  

Israel’s GDP posted robust 3.8% quarter-on-quarter growth in Q3, driven by significant increases in consumer spending (8.6%), fixed asset investment (21.8%), and exports of goods and services (5.2%).  

Q3 2024 highlighted varied economic dynamics, with some economies benefiting from consumer spending and public investment, while others faced headwinds from slowing exports and industrial declines. These insights underscore the complex interplay of global and domestic factors shaping economic trajectories worldwide.