Germany in the G7 check: Why we are lagging behind!

Germany in the G7 check: Why we are lagging behind!

Germany has positioned itself as the economic bottom of the G7 countries. Current reports from Deutschlandfunk According to this, the gross domestic product (GDP) shrank by 0.2 percent in the period from January to March 2025 compared to the same period last year. While the other G7 countries, which include the USA, Canada, Great Britain, Japan, France and Italy, recorded economic growth, Germany fell short of expectations.

The reasons for the weak economic situation are diverse. For years, the German economy has been suffering from an unresolved problem: weak consumption. There is hardly any recovery to be seen after the wave of inflation. Additional burdens come from high energy costs, bureaucracy and ongoing trade conflicts, which are putting companies in Germany under pressure.

G7 at a glance

The Group of Seven (G7) is an informal forum that brings together the heads of state and government of the leading industrialized countries. Representatives of the European Union are also present at the annual G7 meetings. The G7 has neither an administrative apparatus nor a permanent representation. The presidency changes every year, Italy will take over the presidency in 2024, followed by Canada in 2025 and France in 2026 Destatis reported.

In 2023, the G7 countries represented around 10 percent of the world's population, but generated 29 percent of global economic output. At the same time, they were responsible for 20 percent of global CO2 emissions. About 778 million people lived in the G7 countries, with newborn life expectancy exceeding the global average of 72 years.

Economic indicators

The economic situation of the G7 countries shows significant differences. While Germany recorded a shrinking economy in 2023 with a GDP decline of 0.3 percent, the USA reported growth of 2.9 percent. The G7 countries also ran a deficit in their public finances last year, with Japan recording the highest deficit of -4.1 percent.

In addition, the high energy costs in Germany are a serious problem. In 2023, the inflation rate in Germany was 5.9 percent, while in the United Kingdom it even reached 6.8 percent. Despite these challenges, Germany achieved the largest trade surplus within the G7 at $228 billion, indicating the country's strong export power.

The G7 countries appear to be facing similar challenges, as the 2022 birth rate in all member states was below the global average of 2.3 children per woman. Particularly striking is Italy, where the birth rate was 1.2 children per woman.