G7 Faces Credibility Crisis Amid Economic Decline, Global South Rift

The Group of Seven (G7) is experiencing a significant decline in its global influence, both economically and politically, as its share of global GDP has fallen below 30 percent and it now represents only 10 percent of the world’s population. Internal divisions and diverging interests among member countries, particularly regarding China and the Middle East, have weakened the bloc's ability to set a coherent global agenda, with initiatives often failing to gain support beyond the G7 itself. The Trump administration's approach has further strained the alliance, as his confrontational trade policies and criticism led some members to seek greater independence from U.S. security guarantees and diversify their trade relationships. This erosion of cohesion is compounded by the G7's continued reliance on fossil fuel subsidies and inward-looking trade policies, which have damaged the group's credibility, especially among emerging economies. Experts note that while the G7 remains a club of wealthy democracies, it no longer shapes strategic global initiatives as it once did, reflecting the shifting balance of power toward Asia and the Global South. Despite these challenges, the European Commission has reaffirmed its commitment to economic and financial support for Ukraine, including a substantial loan allocation under the G7 initiative for 2025.