Inflation rates rose all around the world in 2022, so also in the G7 countries, where inflation rates varied from 2.5 percent in Japan to over 8 percent in Italy. Inflation rates increased sharply all around the world through 2022, spurred by Russia's invasion of Ukraine in February that year. Especially gas and electricity were hit by price increases following the outbreak of the Russia-Ukraine war. Inflation rates were falling in all G7 economies in 2024.

The rising inflation worldwide in 2022 and 2023 is reflected in the increasing prices of the different commodity groups in the G7 countries. Most notably, the price of electricity, gas, and other fuels was high in the third quarter of 2024 in Japan, with price increases reaching 15 percent compared to the same period in 2023. On the other hand, gas and electricity inflation was negative in Germany, Italy, and the UK following extremely high rates in 2022 and the first half of 2023. Inflation rates increased sharply all around the world through 2022 and the beginning of 2023, spurred by Russia's invasion of Ukraine in February that year. Economic challenges in Japan As food and restaurant costs have risen in Japan in comparison to the rest of the G7 nations, overall, Japan is facing a period of economic slowdown. Over time, the value of the Japanese yen has dropped. Moreover, the Japanese GDP has also dropped, going from around five trillion U.S. dollars in 2021 to 4.1 trillion U.S. dollars by 2024. However, it is predicted to begin increasing by 2025. Falling electricity costs Due to the COVID-19 pandemic and the energy crisis driven by the February 2022 invasion of Russia into Ukraine, electricity prices increased worldwide through 2021, 2022, and 2023. As of 2024, inflation of electricity costs is decreasing across the G7, more than other commodity groups. This rise and fall can be seen throughout Europe as well as within the United States, after peaking in 2022.

Inflation rates rose all around the world in 2022 and remained high in 2023, so also in the G7 countries except *****. However, inflation rates were forecast to ********* the next years. Inflation rates ********* sharply all around the world through 2022, spurred by Russia's invasion of Ukraine in February that year. Especially gas and electricity were hit by price increases following the outbreak of the Russia-Ukraine war.

The combined gross domestic product (GDP) growth rate in the G7 countries is expected to slow in 2023 amid rising inflation rates around the world. That year, it was forecast to grow by around *** percent, before increasing over the next years. GDP growth rates were even forecast to be slightly negative in Germany in 2023.

This dataset provides values for CORE INFLATION RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

The gross domestic product (GDP) of all G7 countries decreased sharply in 2009 and 2020 due to the financial crisis and COVID-19 pandemic, respectively. The growth decline was heavier after the COVID-19 pandemic than the financial crisis. Moreover, Italy had a negative GDP growth rate in 2012 and 2013 following the euro crisis. In 2023, Germany experienced an economic recession.

In September 2025, global inflation rates and central bank interest rates showed significant variation across major economies. Most economies initiated interest rate cuts from mid-2024 due to declining inflationary pressures. The U.S., UK, and EU central banks followed a consistent pattern of regular rate reductions throughout late 2024. In September 2025, Russia maintained the highest interest rate at 17 percent, while Japan retained the lowest at 0.5 percent. Varied inflation rates across major economies The inflation landscape varies considerably among major economies. China had the lowest inflation rate at -0.3 percent in September 2025. In contrast, Russia maintained a high inflation rate of 8 percent. These figures align with broader trends observed in early 2025, where China had the lowest inflation rate among major developed and emerging economies, while Russia's rate remained the highest. Central bank responses and economic indicators Central banks globally implemented aggressive rate hikes throughout 2022-23 to combat inflation. The European Central Bank exemplified this trend, raising rates from 0 percent in January 2022 to 4.5 percent by September 2023. A coordinated shift among major central banks began in mid-2024, with the ECB, Bank of England, and Federal Reserve initiating rate cuts, with forecasts suggesting further cuts through 2025 and 2026.

In this paper, we propose a hierarchical shrinkage approach for multi-country VAR models. In implementation, we consider three different scale mixtures Normals priors and provide new theoretical results. Empirically, we examine how model specifications and prior choices affect the forecasting performance for GDP growth, inflation, and a short-term interest rate for the G7 economies. We find that hierarchical shrinkage, particularly as implemented with the Horseshoe prior, is very useful in forecasting inflation. It also has the best density forecast performance for output growth and the interest rate. Multi-country models generally improve on the forecast accuracy of single-country models.

The imports volume of all G7 countries was negative in 2020 due to the COVID-19 pandemic, with the United Kingdom seeing the most dramatic decrease at minus ** percent compared to 2019. However, import volumes were positive again in all countries in 2021, but decreased in some countries in 2023 and 2024 amid high inflation rates.

The United States has had the highest economic growth in the G7 since the start of the COVID-19 pandemic, with its economy *** percent larger in the first quarter of 2023, when compared with the fourth quarter of 2019. By contrast, the United Kingdom and Germany have both seen their economies shrink by *** percent in the same time period.

All G7 countries except ***************** saw a wage ******** in 2022 in terms of purchasing power parity as a result of the high inflation rates that year. Moreover, all countries except ***************** saw wages ******* in 2020 as a result of the COVID-19 pandemic.

The exports volume of all G7 countries was negative in 2020 due to the COVID-19 pandemic, with France seeing the most dramatic decrease at minus ** percent compared to 2019. However, export volumes were positive again in all countries in 2021, but slowed in 2023 and 2024 amid high inflation rates.

With the collapse of the U.S. housing market and the subsequent financial crisis on Wall Street in 2007 and 2008, economies across the globe began to enter into deep recessions. What had started out as a crisis centered on the United States quickly became global in nature, as it became apparent that not only had the economies of other advanced countries (grouped together as the G7) become intimately tied to the U.S. financial system, but that many of them had experienced housing and asset price bubbles similar to that in the U.S.. The United Kingdom had experienced a huge inflation of housing prices since the 1990s, while Eurozone members (such as Germany, France and Italy) had financial sectors which had become involved in reckless lending to economies on the periphery of the EU, such as Greece, Ireland and Portugal. Other countries, such as Japan, were hit heavily due their export-led growth models which suffered from the decline in international trade. Unemployment during the Great Recession As business and consumer confidence crashed, credit markets froze, and international trade contracted, the unemployment rate in the most advanced economies shot up. While four to five percent is generally considered to be a healthy unemployment rate, nearing full employment in the economy (when any remaining unemployment is not related to a lack of consumer demand), many of these countries experienced rates at least double that, with unemployment in the United States peaking at almost 10 percent in 2010. In large countries, unemployment rates of this level meant millions or tens of millions of people being out of work, which led to political pressures to stimulate economies and create jobs. By 2012, many of these countries were seeing declining unemployment rates, however, in France and Italy rates of joblessness continued to increase as the Euro crisis took hold. These countries suffered from having a monetary policy which was too tight for their economies (due to the ECB controlling interest rates) and fiscal policy which was constrained by EU debt rules. Left with the option of deregulating their labor markets and pursuing austerity policies, their unemployment rates remained over 10 percent well into the 2010s. Differences in labor markets The differences in unemployment rates at the peak of the crisis (2009-2010) reflect not only the differences in how economies were affected by the downturn, but also the differing labor market institutions and programs in the various countries. Countries with more 'liberalized' labor markets, such as the United States and United Kingdom experienced sharp jumps in their unemployment rate due to the ease at which employers can lay off workers in these countries. When the crisis subsided in these countries, however, their unemployment rates quickly began to drop below those of the other countries, due to their more dynamic labor markets which make it easier to hire workers when the economy is doing well. On the other hand, countries with more 'coordinated' labor market institutions, such as Germany and Japan, experiences lower rates of unemployment during the crisis, as programs such as short-time work, job sharing, and wage restraint agreements were used to keep workers in their jobs. While these countries are less likely to experience spikes in unemployment during crises, the highly regulated nature of their labor markets mean that they are slower to add jobs during periods of economic prosperity.