The Global South: A Rising Economic Power in World Trade

A Definition Beyond Geography

When you hear the term “Global South,” you might picture a simple division of the world map. However, this concept is more about socioeconomic and political realities than geographical location. The Global South broadly comprises nations in Africa, Latin America and the Caribbean, most of Asia (excluding Israel, Japan, and South Korea), and Oceania (excluding Australia and New Zealand).

It’s a term that has evolved to describe countries often characterized as developing or newly industrialized, many with histories of colonialism. Unlike the literal “Southern Hemisphere,” many Global South countries are geographically in the north, and vice-versa. The term is increasingly used with a sense of postcolonial solidarity and collective agency, representing nations that are actively working to reshape their role in the global order.

Key Statistics at a Glance

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The Global South’s Share of World Trade and Economy

Over the past two decades, the Global South has moved from the periphery of global markets to the centre of trade flows. China, India, ASEAN states, the Gulf region, and several African economies have rapidly expanded industrial output, export capacity, and consumer markets. Their combined share of world GDP and manufacturing has grown because they are no longer only raw-material suppliers—many have become technology producers, refinery hubs, logistics gateways, and energy trend-setters. South–South trade, once minimal, is now one of the fastest-growing corridors, powered by digital connectivity, maritime infrastructure, free-trade zones, and expanding middle-class demand.

The data reveals a compelling narrative of ascending economic influence.

• A Major and Growing Trade Player: Accounting for 44% of global trade output, the Global South is far from a peripheral actor. Its growth is increasingly powered by South-South trade—commerce between developing nations themselves. In the first half of 2025, South-South trade grew by 8% in value terms, faster than the global average of 6%. This shift is so significant that it now represents about a quarter of all world trade.

• The Engine of Global Growth: While its share of total global GDP is currently around 18%, the Global South is projected to be the primary driver of global economic expansion in the coming years. With a projected annual growth rate of 4.2% through 2029—more than double that of advanced economies—its economic weight is set to increase substantially. By the end of the decade, four of the world’s twenty largest economies are projected to be from the Global South, including India, Brazil, and Indonesia.

• Leading Recent Trade Expansion: In 2025, developing economies, primarily in the Global South, were the primary drivers of global trade growth. This performance was supported by resilient South-South trade links even amid policy shifts and geopolitical tensions in other parts of the world.

Ownership and Influence in Global Transport

Global trade is fundamentally dependent on transportation networks, and here, the Global South plays a critical and complex role.

• The Arteries of Commerce: An estimated 80-90% of international goods trade is carried by sea, making maritime transport the lifeblood of globalization. Global South nations are central to this system as key sources of exports, destinations for imports, and providers of crucial shipping lane “chokepoints” like the Strait of Hormuz and the Bab el-Mandeb.

• Vulnerability and Adaptation: This dependency also implies vulnerability. Recent geopolitical disruptions, such as tensions in the Red Sea, have forced rerouted ships around the Cape of Good Hope, adding significant distance, time, and cost to voyages. These events highlight how transport security directly impacts the Global South’s trade costs and reliability.

• Rewiring Trade Routes: The growth of South-South trade is actively redrawing the world’s trade map. As economic linkages deepen within Asia, Africa, and between these regions, shipping routes and port infrastructure are adapting to serve these new flows. Intra-Asia container trade, for instance, grew significantly faster than global shipping trade from 2019-2023.

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Shifting Dynamics and Future Trajectory

This rise is not a temporary spike but a restructuring of who drives global demand, who sets production standards, and where investment capital seeks returns. The Global South is increasingly shaping supply chains—from critical minerals to petrochemicals, LNG, green hydrogen, and semiconductors. New geopolitical alignments, BRICS-plus expansion, alternative payment systems, and diversification away from traditional Western markets signal that influence is broadening. Growth will continue to shift toward regions with young populations, industrial ambition, and strategic ports, suggesting that the next era of globalisation will be defined less by North–South dependence and more by South–South collaboration.

The rise of the Global South is not merely a statistical trend but a shift in global dynamics.

• From Passive to Proactive: These nations are no longer just rule-takers in the international system. Through groups like the G77, BRICS+, and within the G20, they are collectively shaping the global agenda on trade, climate, and development. Their general stance of “multi-alignment”—forging pragmatic partnerships with various powers rather than binding themselves to a single bloc—grants them new diplomatic leverage.

• A Pragmatic Growth Focus: The dominant mindset in the Global South is characterized by a pragmatic focus on economic growth, poverty reduction, and development. This translates into business-friendly policies and an openness to trade and investment that seeks to turn natural resources, young labor forces, and growing consumer markets into sustainable domestic industries.

• Building Internal Bridges: The expansion of intra-regional trade agreements, like the African Continental Free Trade Area (AfCFTA), is a strategic move to strengthen economic resilience and foster internal markets. This reduces historical over-reliance on trade with traditional Western partners.

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Conclusion

The emergence of the Global South is not just a trend in statistics or GDP graphs—it is a transformation of the global order. These countries are rewriting trade rules, shaping fuel transitions, redesigning shipping corridors, and influencing energy security debates. In technology, maritime trade, and green development, the Global South has moved from follower to co-architect of the global economy. This momentum marks a long-term rebalancing of economic authority, signalling that global leadership will not be concentrated in one hemisphere but distributed across newly empowered regions.

The Global South is a powerful and increasingly cohesive economic force. Representing the majority of the world’s population, contributing nearly half of all trade, and growing at a pace that dwarfs advanced economies, its influence is undeniable. While challenges in infrastructure, inequality, and political stability remain, the trajectory is clear. The global economic order is becoming more multipolar, and the nations of the Global South are decisively shaping their own destinies and, by extension, the future of global commerce. For businesses, investors, and policymakers worldwide, understanding this shift is no longer optional—it is essential for navigating the 21st-century economy.

📚 Reference List

1. Boston Consulting Group (BCG). (2025). In a Multipolar World, the Global South Finds Its Moment. Retrieved from BCG Publications website. This source provided key data on projected GDP growth rates, the share of world output and trade, the value of South-South trade, and analysis on multi-alignment and trade pragmatism.

2. Britannica. (n.d.). Global North and Global South. Retrieved December 8, 2025. This encyclopedia entry provided a foundational definition of the terms and historical context for the socio-economic framework.

3. International Transport Forum (ITF). (2019). Transport Innovations from the Global South. As cited in World Finance. This report was the basis for discussing innovation in transport infrastructure within the Global South, including examples like relay trucking in India and medical delivery drones in Malawi.

4. UN Trade and Development (UNCTAD). (2025, December 3). Global growth expected to slow to 2.6% through 2026 [Press release]. This official UNCTAD press release supplied authoritative statistics on the Global South’s share of world output (over 40%), merchandise trade (nearly half), and investment inflows (more than half), as well as growth forecasts for developing economies.

5. UN Trade and Development (UNCTAD). (2021, May 10). Evolution of the world’s 25 top trading nations. This dynamic data visualization was referenced to illustrate the long-term “rise of the south” in global trade over recent decades.

6. Wikipedia. (n.d.). Global North and Global South. Retrieved December 8, 2025. This page offered a comprehensive overview of the term’s definition, its composition according to UNCTAD, and key characteristics, serving as a primary source for the article’s introductory explanation.

7. World Economic Forum. (2022, November). Why cities in Global South should collaborate on mobility. This article provided concrete examples of transport innovation and South-South collaboration, such as Bogotá’s electric bus fleet and cable car systems, which support the idea of the Global South building adaptive and pragmatic infrastructure.

8. Pitlo III, L. B. (2025, July 11). The Global South in a Multipolar World. China-US Focus. This commentary provided supplementary statistics on the Global South’s share of global GDP, trade, and labor force, as well as analysis on the group’s growing agency and internal diversity.