Major Economies Economic Outlook
The G7 economy as a whole will grow at a similar pace to 2025 in 2026. Loose monetary policy across most countries, fiscal stimulus in Germany and technology-driven productivity gains—particularly in the U.S—will provide support, though more protectionist U.S. trade policy will be a drag. The U.S. will be the bloc’s top performer, and Japan the bloc’s laggard.
Major Economies Inflation
In the year to date, inflation in Canada and the three largest Eurozone economies has stayed close to or below central banks’ 2.0% targets. In contrast, Japan, the UK and the U.S. have recorded inflation well above that level. Next year, inflation will be above 2.0% in the UK and the U.S., and close to or below 2.0% in Canada, the Euro area and Japan.
This chart displays Economic Growth (Real GDP, ann. var. %) for Major Economies from 2025 to 2020.
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| GDP per Capita (USD) | 48,882 | 54,197 | 55,336 | 58,568 | 60,638 |
| Industrial Production (ann. var. %) | -7.2 | 5.7 | 2.2 | -0.7 | -1.3 |
| Merchandise Exports (USD bn) | 2,870 | 3,497 | 4,004 | 3,850 | 3,835 |
| Merchandise Imports (USD bn) | 3,939 | 4,770 | 5,523 | 5,194 | 5,348 |
| Private Consumption (annual variation in %) | -5.1 | 6.5 | 4.0 | 1.6 | 2.0 |
| Policy Interest Rate (%, eop) | -0.02 | -0.01 | 3.31 | 4.58 | 3.72 |
| Merchandise Trade Balance (USD bn) | -1,069 | -1,273 | -1,520 | -1,344 | -1,513 |
| Current Account Balance (% of GDP) | -0.7 | -0.6 | -2.0 | -1.2 | -1.2 |
| International Reserves (USD bn) | 1,810 | 1,958 | 1,755 | 1,836 | 1,766 |
| Public Debt (% of GDP) | 133 | 127 | 120 | 119 | 119 |
| Economic Growth (Real GDP, ann. var. %) | -4.2 | 6.0 | 3.0 | 1.9 | 1.9 |
| Fiscal Balance (% of GDP) | -11.5 | -8.7 | -4.4 | -4.8 | -4.9 |
| 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 |
| Investment (annual variation in %) | -3.9 | 5.7 | 2.2 | 2.4 | 1.1 |