Uncertainty in Developing Economies: Developing economies tend to grow faster than developed economies but they are also likely to fluctuate significantly because of worldwide politics, trade rules and technology. Below are some of the factors that are impacting traditional trade both negatively and positively.
World Economic Growth: The International Monetary Fund has slightly increased its global economic growth forecast for 2025 and 2026. In 2025, the world economy is expected to grow by 3 percent, up from 2.8 percent projected in April. In 2026, this is expected to rise again to 3.1 percent, up from a previous forecast of 3.0 percent. Many of the fastest growing economies are in Africa and Southeast Asia. Of the ten fastest growing economies in 2025, only two are not from Africa or Southeast Asia.
US GDP Growth: U.S. GDP grew sharply by 3 percent in the second quarter of 2025, data released Wednesday, 20 July, by the Bureau of Economic Analysis shows. In Q1, real GDP had decreased by a recalculated 0.5 percent on an annualized, seasonally adjusted basis. Earlier in the year, imports to the U.S. soared ahead of the Trump administration’s tariff announcements, which had a negative effect on GDP. In the second quarter, which ran from April to June, the opposite happened. The opposite effect occurred in countries which are affected by US Trade Tariff announcements.
Global Food Prices: World food prices were rocked by the COVID pandemic and Russian invasion of Ukraine earlier in this decade. Now, according to the Food and Agriculture Organization of the United Nations (FAO), the FAO Food Price Index climbed to 128 points in June 2025, indicating a 28-percent increase in global food prices compared to the 2014-2016 base period. While that’s down from a peak of 160 in March 2022, shortly after Russia’s invasion of Ukraine, it’s up almost six percent from June 2024 and roughly 35 percent from the 2019 average. For countries whose population has limited or no disposable income, this rise is of great significance.
Mobile Money Accounts Vs Bank Accounts: Mobile money accounts have become increasingly popular as they are accessible even with basic mobile phones and because they can receive, send and store money through an individual’s phone number. Sub-Saharan Africa has for some time been the area where this technology has flourished. However, Mobile Money Accounts have been branching out, chiefly to Latin America and Southeast Asia. The countries where mobile money account ownership surpassed traditional bank account ownership are all located in Africa, with Zambia, Kenya, Uganda and Ghana topping the list.
Population Growth: According to United Nations’ latest projections of global population, India surpassed China as the world’s most populous country in 2023. Europe’s population is declining and Asia’s and Latin America’s growth is expected to decrease in the 2050s. Africa will become the largest driver of global population growth for decades to come. By 2100, four African nations are expected to join India, China, and the United States among the world’s 10 most populous countries, with Nigeria’s population projected to approach half a billion by the end of the century.
Looking for analysis, insights and direction into developing economies or to discuss your needs, and see how we can assist, contact Steve Johnson, Managing Director at Frontline Research Group on Tel: +230 5493 6376 or email: steve@frontlineafrica.com
