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OECD attributes GDP growth to private consumption

Updated: 2012-01-14 08:21
( Xinhua)

PARIS - Private consumption was the main driver of the OECD Gross Domistic Product (GDP) growth in the third quarter of 2011, the Paris-based Organization for Econimic Cooperation and Development (OECD) said on Friday.

Real GDP in the OECD area grew by 0.6 percent in the third quarter of 2011, the organization said in a regular report.

"Private consumption was the main contributor for the OECD as a whole, adding 0.3 percentage point, with net exports and gross fixed capital formation each contributing 0.2 percentage point. Destocking reduced overall GDP growth by 0.1 percentage point," the report said.

Vigorous growth was also seen in Japan and in Canada. After the earthquake disaster in March, 2011, Japan picked up a strong growth to 1.4 percent partly due to a technical rebound. Net exports in the country, which contributed 0.6 percentage point, and private consumption (0.4 percentage point) were the main drivers.

Canada also registered a 0.9-percent growth, driven by a strong showing from net exports, but partially offset by destocking, according to the report.

"In the United States, investment and private consumption were the main drivers of growth. Private consumption was the main driver of overall growth in both France and Germany, with the contributions rebounding strongly from the negatives recorded in the previous quarter," the OECD said.

However, stockbuilding continued to be the main contributor to growth in Britain, while private consumption and net exports continued to drag down overall growth.

In Italy, net exports were the main contributor to overall growth but all other components, especially stocks, dragged down overall growth, the report concluded.