AI could boost LatAm, Caribbean economy 5.1% over a decade but wages may fall, IDB says
New York, September 21 - Artificial intelligence could boost Latin American and Caribbean economic output by 5.1% over a decade, according to forthcoming research from the Inter-American Development Bank (IDB). However, the impact on wages hinges on whether workers can transition into growing sectors, the IDB predicts in its 2026 flagship report set for November release.
Limited AI integration could see regional output rise by only 0.3%, while productivity gains could boost output by 2.3% to 5.3%. Conversely, if workers fail to adapt to new job opportunities, wages could drop by 13.5% to 20.9%. The IDB, the largest development lender in the region with 48 member countries including 26 borrowing members, is urging for increased financing, long-term purchase contracts, and minimum prices to safeguard critical-minerals supply chains.
IDB President Ilan Goldfajn emphasized the need for distinguishing minerals produced ethically and environmentally from those that aren't, suggesting a "buyers' club" with a minimum price for buyers. During a closed-door meeting with regional leaders, including the heads of state of Chile and Uruguay, as well as executives from major tech firms, Goldfajn discussed AI and critical minerals without revealing specifics on the club or price mechanism, nor the IDB's potential financial support.
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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- AI could boost LatAm, Caribbean economy 5.1% but wages may fall, IDB says channelnewsasia.com
