Canada's G7 Membership Under Threat: Global Economic Power Dynamics Shift

The G7's relevance and membership composition may be challenged due to changing global economic power dynamics. Economist Jack Mintz argues that if the group were created today, Canada might not receive an invitation.

The G7 was formed in 1975 as a response to the economic turmoil of the 1970s, including the oil embargo and the collapse of the Bretton Woods monetary system. At the time, membership broadly reflected the world's largest advanced economies.

However, today's global economic landscape is vastly different. The US remains the world's largest economy with a GDP exceeding $32 trillion, while China has firmly established itself as the second-largest economy at approximately $21 trillion. Emerging economies such as India and Brazil have surged up the rankings, while Canada's position has slipped.

Canada's economic growth has often been supported by population growth rather than gains in productivity. The country has struggled with weak productivity growth for over a decade, which has resulted in a decline in business investment per worker and capital investment. Without stronger investment, innovation, and infrastructure development, Canada risks falling further behind nations that are aggressively pursuing economic growth.