• Written by Editorial Team
• December 31, 2025
• 4 minutes

The World’s Economic Center of Gravity Shifted in 2025 — And the Global South Won

AI TV INFO Channel | Year-End Economic Intelligence
As of December 31, 2025

While headlines in 2025 focused on slowdown, inflation anxiety, and geopolitical tension in advanced economies, a quieter — but far more consequential — story unfolded elsewhere.

Across Africa, Asia, and Latin America, the Global South emerged as the primary engine of global growth, closing the year with historic milestones, structural progress, and a decisive shift in economic influence.

This is the data-backed story most media outlets missed.

 2025: The Year the Global South Took the Lead

According to IMF, World Bank, ADB, and regional development banks, developing economies accounted for the majority of global growth in 2025, even as overall world growth slowed to roughly 3.2%.

Several defining themes shaped the year:

• Faster GDP growth than advanced economies

• Rising South-South trade and investment

• Digital leapfrogging and fintech expansion

• Clean energy leadership

• Stronger macroeconomic management

🇮🇳 India’s Historic Breakthrough

India crossed a historic threshold in 2025, overtaking Japan to become the world’s fourth-largest economy by nominal GDP, valued at approximately $4.18 trillion.

Why this matters:

• GDP growth: ~6.3%–8.2% across 2025

• Drivers: Manufacturing expansion, services exports, digital public infrastructure

• Reforms: Tax, labor, and trade liberalization strengthened entrepreneurship and investment

India’s ascent isn’t just a national story — it symbolizes the rising weight of the Global South in global GDP rankings.

 The World’s Fastest-Growing Economies Are Mostly in the Global South

2025’s top growth performers were overwhelmingly developing economies, many rebounding through reforms, resource booms, or post-conflict recovery.

Based on December 30, 2025, updates from the IMF World Economic Outlook and regional bank reports.

Africa alone dominated the high-growth rankings — a trend increasingly visible in IMF and World Bank projections.

Regional Growth Snapshot

Africa: Resilience Amid Global Headwinds

• Average growth: ~3.8%–4.1%

• Key contributors: Nigeria, Egypt, South Africa

• Tailwinds: Lower inflation, infrastructure reform, rising trade

South Africa ended 2025 with low inflation, reform momentum under Operation Vulindlela, and its first credit-rating upgrade in nearly 20 years.

Asia: The Global Growth Anchor

• South Asia: ~6.6% growth (world’s fastest major region)

• Southeast Asia: ~4.5% growth after upward revisions

Indonesia, Malaysia, and Vietnam posted strong manufacturing and services performance, while Asia’s digital economy is projected to reach $560 billion by 2030.

🇱🇦 Latin America & the Caribbean: Quiet Stability

• Regional growth: ~2.3%–2.5%

• Standouts: Guyana (~11.8%), Argentina (~4.6%), Peru (~3%)

• Key signal: The region attracted 15% of global FDI, double its share of global GDP

Structural Wins That Matter Long-Term

Clean Energy Leadership

The Global South led climate-linked economic progress:

• Brazil expanded wind and solar at scale

• Rwanda advanced off-grid solar and rural electrification

• Morocco expanded urban rail

• Ethiopia & Kenya pushed forward a $14B renewable-powered rail corridor

Clean energy became a growth strategy, not a constraint.

Digital Economy & Fintech Boom

• Africa remained the fastest-growing fintech region globally

• Mobile money, digital IDs, and platform economies unlocked access for SMEs

• Cloud and AI investment accelerated faster than in advanced markets

Digital leapfrogging replaced slow, capital-intensive development paths.

South-South Trade & Investment: A Defining Shift

• Global trade exceeded $35 trillion for the first time

• South-South trade grew ~8% in 2025

• Developing economies accounted for 58%+ of global FDI

At the BRICS Summit in Brazil, leaders reinforced cooperation on trade, finance, innovation, and digital governance — signaling a more multipolar economic architecture.

Sentiment Shift: Risk Perception Changed

Despite tariffs, geopolitical tension, and tighter global financial conditions:

• Emerging market currencies stabilized

• Debt refinancing risks eased

• Credit outlooks improved across multiple Global South economies

Investors increasingly recognized that diversified trade, regional integration, and domestic demand reduced exposure to Western policy shocks.

🧠 AI TV INFO Channel Perspective

2025 will be remembered as a correction year — not of markets, but of perception.

While advanced economies grappled with aging populations and sluggish growth, the Global South:

• Delivered the fastest expansions

• Attracted record investment

• Led in digital adoption and clean energy

• Increased its share of global output

The data is clear:

The Global South didn’t just catch up in 2025 — it reshaped the global economy’s trajectory.

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