JamzNG Latest News, Gist, Entertainment in Nigeria
“Only a small portion of corporate investments are now driven by traditional interests such as low labor costs,” said the senior UNCTAD official, Anastasia Nesvetailova.
“Instead, value is shifting to strategic sectors, semiconductors, artificial intelligence, green energy, advanced computing, where barriers to entry into the country are high and continue to increase.”
Access problems
The agency identified increased export controls, investment screening and supply chain preconditions as reasons why strategic sectors are more difficult for developing countries to access.
Turning to the current year, UNCTAD said that higher trade values continued to be driven by price increases associated with the global energy shock caused by the US-Iran war.
The global trade map is also shifting, with trade between China and the United States falling by more than 20 percent since 2024.
Meanwhile, East Asian countries have expanded their trade ties with China and North America.
Asia: The engine of growth
“Even when the (global) economy slows, Asia will contribute 60 percent of global growth this year,” explained Ms. Nesvetailova. “The fastest growing economies include China, India, Kyrgyzstan, Mongolia, Tajikistan, Uzbekistan and Vietnam.”
The Global South is lagging behind
Apart from a handful of Asian countries, most Southern countries are falling further behind, UNCTAD said. And as their growth slows, financial risks increase and development financing comes under pressure, the agency said.
To support trade in developing countries, UNCTAD calls for long-term support for domestic industry, training, research and foreign investment linked to local suppliers.
