G7 is a term that is used to describe the Group of Seven. This is a group of seven countries that have the largest and most advanced economies in the world. These are the most industrialized nations in the world.
When breaking down the numbers, the G7 countries represent over 46% of the gross domestic product globally based on nominal values. These countries represent over 32% of the GDP based on purchasing power parity. The countries in this group have more than 62% of the global net wealth – or a total of $280 trillion.
This organization of nations was originally founded in order to allow the members to share macroeconomic initiatives. This was in response to the collapse of the exchange rate in the 1970s, the energy crisis and the recession that followed.
Since the mid-1970s, the group meet each year to discuss economic policies. The Finance Ministers of the member nations meet up to four times per year. The organization, during its history, has launched an initiative to help out heavily indebted poor countries. It has also become involved in the Financial Stability Forum.
The nations that are part of G7 include Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Of these nations, all seven are top-ranked countries for the highest net wealth per capita, all are leading export countries, and five are on the list of top 10 countries with the largest gold reserves.