Baku, Azerbaijan, April 23. By virtually every
measure, the Global South is rapidly gaining economic weight, Trend
reports with reference to the latest outlook of Boston Consulting
Group (BCG) titled ‘In a Multipolar World, the Global South Finds
Its Moment’.
“If the United Nations G77, which encompasses 133 nations not
including China, is used as a proxy, the Global South accounts for
around 18% of global GDP. But with their combined GDP projected to
grow by an average of 4.2% annually through 2029, compared with
1.9% for advanced economies, these nations are likely to drive the
lion’s share of global growth. Consumption is growing nearly as
fast, fueling dynamic markets for domestic and foreign companies
alike,” reads the report.
BCG analysts note that the Global South is also a rising force
in trade, which is projected to post 4.4% CAGR over the next five
years.
“By 2033, annual Global South trade is projected to approach $14
trillion. A growing portion of those nations’ trade is with each
other: South-South trade is projected to expand 3.8% annually
through 2033, compared with 2.2% CAGR for North-North trade. Global
South nations such as Vietnam, Thailand, and Mexico operate as
“connector economies” in trade flows from China to the West. Trade
between China and the Global South is expected to grow 5.9%
annually for the next decade. As a destination for foreign direct
investment, the Global South has surpassed advanced economies ($525
billion in 2023 vs. $464 billion),” the report says.
BCG notes that the recent sweeping reciprocal trade and tariff
announcements by the US may alter these flows.
“But investment in the Global South could still potentially
benefit under this new scenario. Negotiations between US and Global
South nations, such as those recently proposed by Vietnam, may
eventually improve tariff outcomes. And most importantly, players
in the Global South are increasingly investing among themselves and
building new growth and opportunity bridges, balancing partnerships
between the different poles in a multipolar world,” reads the
report.