IMF: General Government Expenditure Projects in Leading Countries
Fiscal Policy Under Pressure: General Government Expenditure in the G7 Public finances in the world’s leading advanced economies are currently navigating a structural shift. The G7 nations are facing a "fiscal trilemma": balancing rising defense needs, aging populations, and the green transition against a backdrop of higher interest rates. The following data reflects the General Government Expenditure as a percentage of GDP for the G7 nations, reflecting current fiscal profiles. G7 Expenditure Profiles Country Expenditure (% of GDP) Primary Fiscal Drivers France 52.8% Remains the highest in the G7 due to extensive social protection systems. Italy 48.2% Influenced heavily by debt-servicing costs and pension obligations. Germany 47.5% Increasing due to defense modernization and energy transition subsidies. United Kingdom 44.1% Driven by structural pressures on healthcare and social care systems. Japan 42.6% Social security for an aging demographic remains the primary fiscal ...