Time flies, right? We are already halfway through 2025, and a lot of global news and events are the reason for reshaping the economy. War, elections, climate disasters, and whatnot?
New economic plans, work on sustainability, and use new technology; all these events will affect businesses, investors, and leaders around the world. From the World Economic Forum (WEF) in January to COP30 and the G20 Summit later in the year, each one offers important chances for growth, especially in emerging markets.
Let us jump through the article to find out why these events matter and what the economic trends of 2025 are.
AI and Renewable Energy Investments
The 2025 World Economic Forum will be one of the most important global events this year, bringing together world leaders to talk about managing AI, boosting renewable energy investment, and finding smart ways to support sustainable development.
The global economy is facing serious environmental problems, such as:
- Climate change
- Loss of nature
- Pollution
These issues need quick and major changes, along with a big increase in climate-friendly and nature-focused investments.
According to the WEF, by 2030, the world will need to invest at least $4 trillion every year. Around $2.4 trillion should be directed to emerging markets and developing countries, where investment is still low, but there is a significant chance to avoid outdated techniques and implement innovative technologies.
Artificial intelligence (AI) is an effective tool for accelerating change by sparking innovation and modifying entire systems. However, despite AI’s enormous promise, there are still few rigorous studies demonstrating how much it can contribute to economic growth and carbon reduction, which it can.
China-Africa Cooperation on Critical Minerals
In 2025, we have seen China’s increasing investment in Africa’s critical minerals, which are essential for clean energy technologies.
Out of 50 important minerals listed by the U.S. Geological Survey, 32 are found in Africa. The continent holds a huge share of the world’s mineral resources, including 80% of platinum and chromium, nearly half of all cobalt, and over 20% of graphite, materials that are key for technology and defense.
World leaders are now exploring ways to partner with African countries to access these minerals. The U.S. still does not have a clear and complete plan to work with Africa, but China and Russia already have in the region’s mining sector and have a strong presence.
By helping African countries build their own mineral processing systems, these countries can support local economies and help African countries keep more of their own wealth. This would also strengthen their independence in defense. Mineral deals with African countries, which means gaining a stable and trusted source of the minerals it needs for its future.
LATAM And Latin America’s Economy
Latin America and the Caribbean have struggled with slow economic growth for years.
Over the last decade, average GDP per person has grown by less than 0.4% per year, far behind Asia’s nearly 5%. The region also has one of the world’s lowest investment rates. Trade within the region is limited too, with only 15% of trade happening between neighboring countries, compared to over 50% in Asia and the EU.
Raise LATAM Summit 2025 will gather private investors and regional leaders to explore new and creative ways to boost Latin America’s economy. The event will focus on areas like:
- Fintech
- Impact investing
- Sustainable business ideas
Better competition rules, stronger institutions, and more access to finance for small businesses can also help diversify the economy. Bringing in more foreign investment is also a key solution.
ASEAN Economic Forum 2025
The ASEAN Economic Forum 2025 is focusing on improving digital links between countries and speeding up trade across the region.
This creates a great chance for entrepreneurs to use new digital tools and follow updated trade rules to grow their businesses. ASEAN’s digital economy is expected to grow fast, doubling to $2 trillion by 2030, and the ASEAN Digital Economy Framework Agreement (DEFA) will be a major driving force behind that growth.
Unlike digital sections in broader trade agreements like the EU-Singapore Digital Trade Agreement, DEFA is special because it focuses only on the digital economy. It will be the world’s first binding, region-wide agreement dedicated to digital rules and cooperation.
BRICS Summit 2025
On Saturday, 6 July, the leaders of the 11 largest emerging economies came together in Rio de Janeiro to sign the Joint Declaration of the 17th BRICS Summit. Titled “Strengthening Global South Cooperation for More Inclusive and Sustainable Governance,” the declaration shows the group’s strong commitment to multilateralism, upholding international law, and building a fairer global system.
The agreement is the result of months of hard work, including over 200 meetings and the creation or strengthening of 200 cooperation efforts in key areas like:
- Fighting hunger
- Addressing climate change
- Advancing new technologies
The BRICS Summit 2025 will focus on making supply chains stronger and growing trade partnerships among member countries and beyond.
At the Summit, BRICS countries confirmed their strong support for multilateralism and the protection of international law, including the values set out in the UN Charter. The declaration also highlighted the need for developing nations, especially those in Africa, Latin America, and the Caribbean, to have a bigger role in global decision-making systems.
Conclusion
The global events are shaping policies. All of these economic events, from AI and clean energy to digital trade and critical minerals, will open new doors, especially for emerging markets and nations.
The world is shifting, and it will continue to change. Do you want to know more about the market forecast USA UK? You can tell us in the comments below.
FAQs
What are the top major forces that are shaping our global economy?
The interrelated processes of deglobalization, decarbonization, demographic shift, rising debt levels, and fast digitization are changing global economic and inflation dynamics.
What is the biggest challenge for the global economy?
The primary dangers to the global economy are rising geopolitical tensions, China’s economic slowdown, rising financial stress, trade fragmentation, and climate change.
