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Despite the best efforts of Trump and Boris Johnson, the future of globalisation is secure as long as the US and China stay on track
- The G7 summit proved again that the days of the elite club leading the world are over – the future belongs to China and emerging economies
- A recent softening of stances proves a knockout punch to globalisation is unlikely from either the US or British leader, but surviving the trade war will be key
Reading Time:4 minutes
Why you can trust SCMP
This year’s G7 annual gathering of developed economies in Biarritz, France, yielded very little in the way of solutions for a sagging and troubled global economy, and the various social and environmental challenges facing globalisation.
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The ineffectiveness of this select group in influencing the course of world development is doubtless due to a variety of profound changes, both global in nature and country-specific. But, the main underlying reason for their inability to effect change is essentially due to their relatively declining role in world economic growth.
Currently, the G7 accounts for only half of global output in nominal exchange rate terms, and under a third according to purchasing power parity or “PPP” – an economic gauge which measures a country’s real internal consumption power.
The G7’s contribution to world economic growth is even less. For 2018-19, China accounted for 27 per cent of this growth, according to Bloomberg research. India came second with 13 per cent, just ahead of the US at 12 per cent.
Other G7 members made much less of an impact. Germany and Japan recorded around 2 per cent contribution to world GDP, while Britain, France, Italy and Canada each barely managed above a 1 per cent share.
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