What: The Global South emerges as a powerful economic force, representing 62% of global population and projected to reach 20% of global GDP, driven by strategic multi-aligned trade policies and business-friendly environments.

Why it is important: This development marks a historic transition in global retail, as these nations move from being market followers to trendsetters, backed by substantial consumer bases and strategic trade relationships.

The Global South is fundamentally reshaping the global economic landscape, representing a powerful bloc of over 130 nations that collectively account for 62% of the global population. These nations are distinguishing themselves through a pragmatic approach to development, combining business-friendly policies with strategic neutrality in international relations. Their projected GDP growth of 4.2% annually through 2029 significantly outpaces advanced economies' 1.9%, reflecting their increasing economic strength. The transformation is particularly evident in their approach to trade and development, where countries maintain beneficial relationships with both Eastern and Western partners while advancing their own economic interests. This strategic positioning, coupled with rich resources, growing labour forces, and expanding consumer markets, positions the Global South as a crucial engine of global growth. Their success in balancing climate goals with development objectives while fostering innovation and trade demonstrates a sophisticated approach to economic advancement that is attracting significant international investment and partnerships.

IADS Notes: Recent market developments validate the Global South's rising influence in global retail. In September 2024, India's emergence as the most attractive market for retail expansion attracted luxury brands like Birkenstock through strategic local partnerships . By January 2025, Asia-Pacific markets showcased diverse consumer behaviours, with India pioneering experiential retail while Southeast Asian nations prioritised infrastructure . The momentum continued in February as Vietnam targeted a $350 billion retail market, while Korean retail giants expanded their regional presence . March 2025 highlighted India's transformation, with affluent households set to reach 30% by 2035 and trillion-dollar infrastructure investments attracting international brands . This culminated in April 2025 with the Global South achieving 4.2% annual GDP growth, more than double that of advanced economies .

The CEO’s guide to the Global South