AI could boost LatAm, Caribbean economy 5.1% but wages may fall, IDB says
The Inter-American Development Bank (IDB) predicts that widespread implementation of artificial intelligence (AI) could increase Latin America and the Caribbean's economy by 5.1% over a decade, according to upcoming research. However, the bank's 2026 flagship report warns that wages could decline by up to 20.9% if workers are unable to transition into jobs that benefit from AI advancements.
The report estimates that regional GDP could only grow by 0.3% under restricted AI adoption and modest productivity gains. On the other hand, if workers manage to secure positions in expanding sectors, wages may rise by 2.3% to 5.3%. To address these potential issues, the IDB president, Ilan Goldfajn, has called for increased financing, long-term purchase agreements, and minimum-price protection for critical minerals' supply chains.
Goldfajn suggested differentiating minerals mined responsibly and in compliance with labor and environmental standards from those that are not, proposing a "buyers' club" with a minimum price for buyers. The president, who was set to discuss AI and critical minerals with regional leaders and technology executives, did not reveal further details about the proposed club, its participants, or the IDB's potential financial involvement.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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