AI infrastructure spending helps offset global energy shock
AgenciesStrong investment in AI infrastructure is keeping global growth at around 3 percent with major benefits for Asia, but also foreshadows a “slow-moving tsunami” that could ma...
International Monetary Fund Managing Director Kristalina Georgieva revealed that strong investment in AI infrastructure is maintaining global growth around 3 percent, despite the negative impact of an energy supply shock caused by the US war on Iran. This positive AI-driven demand shock is expected to benefit Asia, with major economies potentially experiencing a half to one percentage point boost in growth.
Emerging Asian economies could see a 0.2 to 0.8 percentage point increase. However, Georgieva warns that this shift could lead to a "slow-moving tsunami" disrupting labor markets, taxation and education. She predicts that 40% of jobs will be augmented, downgraded or eliminated by AI, with 60% in advanced economies. This transformation will have profound consequences for jobs, growth, education, and taxation.
The IMF forecasts global growth at 3 percent for 2026, but the week-long meetings of the IMF and World Bank in Thailand will address the challenges of balancing AI's benefits with its potential negative impacts.
Written by urgent.news from Qatar Tribune Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
