Major Economies Economic Outlook
The G7 overall is set to expand in 2026 at roughly the same rate as in 2025. Lower interest rates, Germany’s fiscal stimulus and tech-led productivity gains—especially in the U.S.—will support economic growth, though tougher U.S. trade measures will act as a drag. The U.S. will lead the bloc’s GDP growth, with Japan and Italy trailing behind.
Major Economies Inflation
So far this year, Canada and the three biggest Eurozone economies have kept inflation near or under their central banks’ 2.0% goals. By contrast, Japan, the UK and the U.S. have seen price growth well above that mark. Next year, inflation will stay above 2.0% in the UK and the U.S., while averaging around or below 2.0% in Canada, the Eurozone and Japan.
This chart displays Economic Growth (Real GDP, ann. var. %) for Major Economies from 2010 to 2025.
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| International Reserves (USD bn) | 1,810 | 1,958 | 1,755 | 1,836 | 1,766 |
| GDP per Capita (USD) | 48,882 | 54,197 | 55,336 | 58,599 | 60,671 |
| Fiscal Balance (% of GDP) | -11.5 | -8.7 | -4.4 | -4.8 | -4.8 |
| Merchandise Exports (USD bn) | 2,856 | 3,481 | 3,982 | 3,823 | 3,809 |
| Merchandise Trade Balance (USD bn) | -1,084 | -1,287 | -1,538 | -1,364 | -1,532 |
| Merchandise Imports (USD bn) | 3,940 | 4,768 | 5,520 | 5,187 | 5,341 |
| Investment (annual variation in %) | -3.9 | 5.7 | 2.3 | 2.6 | 1.1 |
| Industrial Production (ann. var. %) | -7.2 | 5.8 | 1.3 | -0.9 | -1.5 |
| Policy Interest Rate (%, eop) | -0.02 | -0.01 | 3.31 | 4.58 | 3.72 |
| Economic Growth (Real GDP, ann. var. %) | -4.2 | 6.0 | 3.0 | 1.9 | 1.8 |
| Private Consumption (annual variation in %) | -5.1 | 6.5 | 4.0 | 1.6 | 2.0 |
| Current Account Balance (% of GDP) | -0.7 | -0.6 | -2.0 | -1.2 | -1.2 |
| Public Debt (% of GDP) | 133 | 127 | 120 | 119 | 119 |
| Unemployment (% of active population, aop) | 7.3 | 5.9 | 4.5 | 4.5 | 4.7 |
| Inflation (CPI, ann. var. %, aop) | 0.8 | 3.4 | 7.7 | 4.6 | 2.7 |