Outlook 2025: Emerging Markets Lead the Charge in Global Innovation and Growth

In this blog post, Delphos Chairman and CEO, Bart Turtelboom, shares insights into the outlook for 2025, while also highlighting critical trends in emerging markets poised to fuel innovation and resilience.

The outlook for 2025 shows that emerging market economies will lead global innovation and growth, demonstrating remarkable resilience and ambition. These regions, driven by transformative projects and strategies, are shaping a future of interconnected prosperity. Moreover, according to the World Bank, emerging markets are expected to contribute over 60% of global GDP growth, powered by infrastructure, technology, and energy investments. Here is what to watch in 2025 as the world gears up for another year of progress.

Emerging Markets: Outlook for Economic Growth in 2025

The global economy is projected to grow by 3.4% in 2025 according to World Bank estimates. Emerging markets are leveraging their strengths to attract investment and create sustainable development pathways. For example, Türkiye is advancing its infrastructure projects with US$10B allocated to renewable energy and transportation networks. Türkiye’s wind power capacity is expected to grow by 40% by 2025, enhancing its position as a key regional trade hub. Similarly, in Latin America, Colombia is driving growth through US$12B in infrastructure investments, including major road networks and renewable energy projects that experts project will increase solar capacity by 50% in the next two years. In Africa, Côte d’Ivoire is experiencing a surge in economic activity, with US$8B in investments targeting renewable energy and transport infrastructure, boosting regional trade and connectivity across West Africa.

Sectors to Watch in 2025: Growth Trends in Emerging Markets

Emerging markets are becoming innovation hubs across key sectors:

1. Renewable Energy

The renewable energy transition will shape the outlook for emerging market economies in 2025, with countries like Brazil and South Africa leading growth through transformative solar and wind projects. Renewable energy is a cornerstone for emerging markets seeking to meet sustainability targets and reduce reliance on fossil fuels. In particular, across Latin America, countries like Brazil are leading the charge, with its renewable sector expanding through US$15B in new solar and wind projects. In Africa, South Africa plans to increase its solar energy capacity by 20%, aligning with its decarbonization goals. These investments underline a broader regional commitment to green energy that is attracting private and institutional capital.

2. Critical Minerals

The trends for 2025 highlight emerging market economies as key suppliers of critical minerals, fueling the global transition to clean energy. Emerging markets are vital to the global transition to cleaner energy, thanks to their rich reserves of critical minerals. Latin America—specifically Chile and Argentina—will supply over 50% of the world’s lithium by 2025, driven by increasing global demand for electric vehicles. Similarly, the Democratic Republic of Congo is scaling cobalt production to meet industrial needs. These regions are not only critical resource providers but also potential hubs for processing and value-added services.

3. Infrastructure and Urban Development

Rising infrastructure development will drive growth in emerging market economies as part of broader investment trends in 2025. Infrastructure in emerging markets is evolving rapidly to meet the demands of growing urban populations and economic expansion. Southeast Asia is witnessing transformative projects like Indonesia’s US$34B capital relocation effort, aimed at reducing congestion and improving regional connectivity. Meanwhile, Sub-Saharan Africa is working to close a US$100B infrastructure gap through significant investments in transportation and energy networks, fostering both urban resilience and economic inclusion.

4. FinTech and Digital Inclusion

FinTech will remain a major driver of economic growth, underscoring the role of emerging market economies in investment trends for 2025. Digital technology is revolutionizing financial services in emerging markets, thereby creating new pathways for inclusion. In Africa, mobile money transactions are close to US$1 trillion, with continued growth expected as digital platforms expand. Eastern Europe is emerging as a leader in blockchain innovation, with over 40% of startups focused on decentralized finance solutions. These advancements reflect a broader trend of digital transformation across emerging economies, empowering millions.

5. Sustainable Agriculture

Agriculture remains a backbone of many emerging markets, and sustainability is becoming increasingly central to growth strategies. In Latin America, Brazil’s agroforestry initiatives have boosted yields by 30% on over 1 million hectares, demonstrating the potential of sustainable practices. Meanwhile, Eastern Europe is adopting precision farming technologies, with countries like Poland leveraging data-driven solutions to optimize efficiency and conserve resources. These examples highlight how emerging markets are addressing food security while ensuring environmental sustainability.

Trends That Will Shape 2025

Technology as a Catalyst for Change

Emerging markets are adopting AI, 5G, and blockchain to drive innovation. McKinsey projects that AI adoption could add US$13 trillion to the global economy by 2030, with significant growth beginning now.

Sustainability at the Core

Sustainability remains central to emerging market growth. Thailand’s carbon-neutral tourism initiatives will attract 2 million visitors annually. Nigeria’s e-learning platforms are empowering millions of students with sustainable digital access, driving inclusive education.

A Positive Policy Environment

Governments are reforming policies to attract foreign investment and streamline operations. The African Continental Free Trade Area (AfCFTA) is expected to boost intra-regional trade by 25% in 2025, fostering more cross-border collaborations. In Southeast Asia, ASEAN’s focus on trade liberalization and green infrastructure is projected to drive a 15% increase in intra-regional trade flows. Meanwhile, Latin America’s Pacific Alliance continues to strengthen its economic ties, supporting a significant rise in trade between member countries by 2025.

The Call for Private Capital

Private capital is accelerating growth through blended finance models and partnerships. Public-private infrastructure projects are projected to grow by 15% in 2025, according to McKinsey.

Key Events to Watch in 2025

January to June 2025: WEF, IMF, ASEAN Economic Forum and BRICS Summit

The World Economic Forum in Davos in January will focus on the theme, “Collaboration for the Intelligent Age.” In the 2024 meeting, leaders tackled pressing global challenges such as climate change, artificial intelligence governance, and equitable economic recovery. The 2025 session, therefore, is expected to advance these discussions, offering solutions for sustainable development and digital integration.

In April, the IMF Spring Meetings will explore innovative financing strategies for debt sustainability and green energy transitions. 2024’s discussions centered on supporting vulnerable economies amid global inflation. In 2025, policymakers will aim to address long-term debt solutions and mobilize investments for sustainable growth.

The ASEAN Economic Forum in May will highlight digital inclusion and regional trade opportunities. In its 2024 meeting, ASEAN members agreed on frameworks to support cross-border digital infrastructure. Next year, focus will shift to accelerating trade liberalization and leveraging digital transformation for economic growth.

The BRICS Summit in June will continue discussions on multipolar trade frameworks and critical resource collaboration. In 2024, BRICS members strengthened economic partnerships and expanded their vision for global resource cooperation. The 2025 summit will build on these successes, addressing supply chains and regional trade agreements.

July to December 2025: COP30, G20 Summit and World Bank Annual Meetings

In November, the UN Climate Change Conference (COP30) will take place in Brazil. COP29 emphasized commitments to phase down fossil fuel reliance and increase climate financing. At COP30, nations are expected to present actionable plans for achieving net-zero targets and advancing renewable energy projects.

The G20 Summit in November will convene in South Africa. In 2024, leaders prioritized economic recovery, digital trade, and infrastructure investment. The 2025 summit will strengthen these priorities, emphasizing inclusive growth, technological innovation, and resilience for emerging economies.

Rounding out the year, the World Bank Annual Meetings in December will focus on bridging infrastructure gaps and scaling climate-smart investments. The 2024 meetings underscored the urgency of addressing climate financing and infrastructure deficits in developing economies. In 2025, discussions will center on mobilizing private capital and fostering partnerships to meet these needs.

Why 2025 is the Year to Invest in Emerging Markets

Emerging markets offer unparalleled opportunities for growth, innovation, and impact in 2025. From powering the energy transition to building resilient infrastructure, these regions are laying the foundation for a prosperous future. Businesses aligning with these transformative trends will not only contribute to global progress but also achieve remarkable returns. Delphos looks ahead to raising capital for impactful businesses and advising on transformative projects that foster regional development and sustainability. With over 37 years of experience, we are committed to helping shape a more resilient and prosperous future in emerging markets.

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