India & Africa Lead Resilient Growth at Davos 2026

By AI TV INFO | Global Economic Intelligence — January 22, 2026

The Global South is stepping into the spotlight as emerging markets demonstrate remarkable resilience and strategic growth at the World Economic Forum (WEF) 2026 in Davos. Recent developments from January 21–22 show India, Sub-Saharan Africa, and Latin America outperforming expectations amid easing geopolitical tensions and record-breaking investment commitments.

Key Positive Economic Developments

1. Resilient Growth Forecasts
   Emerging economies are showing steady expansion in 2026:

• South Asia: 5.6% growth, led by India’s 6.6% expansion through consumption and public investment.

• Sub-Saharan Africa: 4.0%, with high-growth economies like South Sudan, Guinea, Uganda, Rwanda, and Ethiopia registering 7–10% due to reforms and resource booms.

• Latin America: 2.1–2.3%, supported by commodities, trade deals, and political reforms.

2. Trade & Market Gains

• Global risk appetite restored after U.S. President Trump’s Davos remarks easing Greenland tensions and ruling out new tariffs on Europe.

• Latin American markets lead global returns, with Chile up 36.6% and Argentina +27.45%, fueled by reforms and commodity booms.

3. Sectoral & Investment Momentum

• AI and tech investments drive productivity gains across Asia and Africa.

• China’s policies spur domestic demand and high-value manufacturing.

• Africa’s industrialization projects and ASEAN+3’s 4.0% forecast highlight regional strengths.

4. Policy & Stability Signals

• South Africa inflation: 3% target met, signaling fiscal stability.

• Davos discussions emphasize cooperation and integration for the Global South.

Regional Highlights

Africa – Stability & Industrialization

• Sub-Saharan Africa: 4.0% growth for 2026, up from 3.9% in 2025.

• South Africa: Inflation projected at 3%, Rand stabilized at R16.30/USD.

• Uganda: $4B refinery project positions it as East Africa’s fuel hub.

• China-Africa Zero-Tariff Initiative: 100% duty-free access for 53 African nations now active, with local processing corridors like the TAZARA Prosperity Belt in Tanzania/Zambia.

Latin America – Trade & Commodity Boosts

• Mercosur-EU deal: Signed January 18, providing duty-free access for key exports, projected GDP boost of €9.4B for Mercosur by 2040.

• Brazil: 1.6% growth, R$977M allocated to education.

• Argentina & Chile: Reforms and commodities drive export and market gains.

• Venezuela: U.S. policy easing seen as bullish for investment.

Developing Asia – Tech & Consumption Drivers

• South Asia: 5.6%, led by India’s 6.6% growth from consumption and public spending.

• ASEAN+3: 4.0% growth, driven by high-tech exports and digital services.

• China: $1.2T trade surplus, 21,000 new firms in Hainan Free Trade Port (+16.42%), duty-free sales up 46.8%.

• India: $100B textile roadmap announced; renewables poised for a breakout year.

Major Investment Highlights at Davos

1. Maharashtra Government, India

• 19 MoUs signed: ₹14.50 lakh crore (~$163B) for infrastructure, tech, green energy, logistics, data centres, EVs.

• Impact: ~1.5 million jobs, multi-sector growth.

2. Mumbai Metropolitan Region Development Authority (MMRDA)

• 10 MoUs: ~$96B (~₹8.7 lakh crore) for urban innovation, logistics hubs, AI, fintech districts.

• Jobs Impact: ~960,000 new opportunities.

3. Uttar Pradesh Government, India

• Investment MoUs: ₹12,800 crore for green energy, steel, carbon credits, and clean mobility projects.

These agreements mark a historic scale of sub-national investment at Davos, highlighting the Global South’s strategic economic positioning and investor confidence.

Market Sentiment & Geopolitical Signals

• Greenland Framework: Trump’s Davos remarks reduce trade tensions, triggering a “risk-on” rally across Asia and Latin America.

• Currency & Equity Gains: Indian Rupee and South African Rand stabilize; Asian equities rebound; gold retreats 1%.

• Global South Diplomacy: Leaders advocate multi-polar trade integration, leveraging technology, AI, and regional partnerships against protectionist Western strategies.

Summary

January 21–22, 2026 marks a pivotal moment for the Global South:

• Resilient growth: South Asia, Africa, and Latin America outperform forecasts.

• Strategic investments: India leads with historic sub-national MoUs; Africa sees industrial modernization.

• Market optimism: Risk-on sentiment restored, currencies stabilized, and emerging market equities rally.

• Policy & reform dividends: Inflation control, digital infrastructure, and AI adoption strengthen regional resilience.

The Global South is not just recovering—it’s asserting itself as a global economic powerhouse, with India, Africa, and Latin America leading the charge.

AI TV INFO’s Takeaway

“From Davos to emerging markets, the story is clear: the Global South is winning in 2026.”

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© AI TV INFO | Global Economics
Data compiled from IMF, and historical economic records. Interpretive analysis by AI TV INFO´s channel.

AI TV INFO is not an investment advisor, broker, or dealer.
The information presented in this report is for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities or financial instruments.

All investing involves risk, in both developed and emerging markets. Regional political, economic, regulatory, and currency factors should be carefully considered.

To invest responsibly in these markets, it is recommended to identify a trustworthy partner with aligned long-term interests, who is successfully active on the ground in these regions and who does not rely on commissions or product sales for compensation. Independent alignment, local expertise, and transparency are critical when navigating opportunities in the Global South.