The International Monetary Fund (IMF) has released its latest forecasts for economic growth in G7 countries in 2025. The data projects steady, albeit modest, GDP growth in major advanced economies. The average GDP growth rate for the G7 nations is expected to remain at 1.7% in 2025, the same as it was in 2024.
The G7 is a group of advanced economies, including the United States, United Kingdom, Canada, France, Germany, Italy, and Japan. Among the G7, Canada is projected to have the highest growth in 2025 at 2.4%. On the other hand, Germany and Italy are anticipated to achieve the lowest growth rates at 0.8%. In 2024, the United States achieved the highest growth rate among the G7 at 2.8%.
Projected Growth for G7 Nations
The table below shows the projected GDP growth rates for G7 countries in 2025.
| Country | Real GDP Growth 2024 (Annual %) | Real GDP Growth Forecast 2025 (Annual%) | Difference (2025 – 2024) % |
|---|---|---|---|
| United States | 2.8 | 2.2 | -0.6 |
| United Kingdom | 1.1 | 1.5 | 0.4 |
| Canada | 1.3 | 2.4 | 1.1 |
| France | 1.1 | 1.1 | 0 |
| Germany | 0 | 0.8 | 0.8 |
| Italy | 0.7 | 0.8 | 0.1 |
| Japan | 0.3 | 1.1 | 0.8 |
| G7 Average | 1.7 | 1.7 | 0 |
The data is sourced from the International Monetary Fund.
While the G7’s average GDP growth rate remains unchanged from 2024, individual countries are experiencing different growth rates.
Canada
Canada is the world’s ninth-largest economy, with a GDP of approximately $2.33 trillion. Among G7 nations, it is expected to record the highest real GDP growth at 2.4%, followed by the United States at 2.2%. This growth rate also exceeds the G7 average of 1.7%. However, Canada grew at a relatively low growth rate at 1.3% in 2024 compared to the US.
United States
The United States remains the world’s largest economy by nominal GDP and the second largest by purchasing power parity (PPP). According to the IMF, the country is expected to sustain steady growth, though at a slightly slower pace. U.S. GDP growth is projected to decline from 2.8% in 2024 to 2.2% in 2025. However, the country is projected to have the second-highest GDP growth among G7 nations in 2025.
Which Countries in Europe Offer the Highest and Lowest Average Salaries
United Kingdom
The United Kingdom is the world’s sixth-largest economy and one of the most developed in Europe. In 2025, the United Kingdom is expected to perform better and achieve the third-highest GDP growth among G7 nations. The country’s economy is projected to grow by 1.7%, an increase from 1.1% in 2024.
European economies like Germany and Italy are growing at a slower rate in both 2024 and 2025. Germany and Italy are expected to have the lowest GDP growth rates among G7 nations, both at 0.8%. These countries were also the weakest performers in 2024. Germany saw minimal growth, close to 0%, while Italy grew by 0.7% in 2024.
Additionally, France is the world’s seventh-largest economy and the third-largest in Europe, after Germany and the United Kingdom. Its economy is projected to grow by 1.1% in 2025, the same as in 2024. However, this growth rate remains below the G7 average of 1.7%.
Japan is the world’s fourth-largest economy, with a nominal GDP of approximately $4.39 trillion. Its growth is expected to rise from 0.3% in 2024 to 1.1% in 2025. However, this remains below the G7 average of 1.7%.
Conclusion
The IMF forecasts show a mixed outlook for G7 advanced economies. Only Canada and the United States are expected to grow above the G7 average of 1.7%. The other five economies will remain significantly below this level. These countries are dealing with challenges like inflation, global trade tensions, and the lasting effects of the pandemic. The United States and Canada are expected to drive most of the group’s overall growth. However, major European economies like Germany and France may face difficulties to sustain their growth.
Add Comment