AI could boost LatAm, Caribbean economy 5.1% but wages may fall, IDB says
The Inter-American Development Bank (IDB) forecasts that widespread deployment of artificial intelligence in Latin America and the Caribbean could boost regional GDP by 5.1 percent over the next decade, according to upcoming research. However, the same study suggests that if workers are unable to transition into jobs created by AI advancements, wages could decline by up to 20.9 percent.
Under a scenario of limited AI adoption and modest productivity gains, GDP growth would be modest at just 0.3 percent. Conversely, if workers successfully transition into new roles within expanding sectors, wages could rise by 2.3 to 5.3 percent. The IDB, the region's largest lender, comprises 48 member countries, 26 of which are borrowing members in the Latin American and Caribbean region.
IDB President Ilan Goldfajn has advocated for enhanced financing, long-term purchase contracts, and minimum-price protection for critical minerals. He proposed differentiating minerals sourced ethically and sustainably from those produced without such protections, suggesting a "buyers' club" with minimum price guarantees for buyers.
While details on the proposed club, price mechanism, and potential financial support from the IDB remain unclear, Goldfajn intends to discuss these issues with regional leaders and technology executives during an upcoming meeting.
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- AI could boost LatAm, Caribbean economy 5.1% but wages may fall, IDB says channelnewsasia.com
