{
  "id": 14122621,
  "title": "How China and India are riding the AI boom",
  "url": "https://urgent.news/2026/10/13/how-china-and-india-are-riding-the-ai-boom",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-13T04:22:14.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/ai/ai-insights/ai-boom-lifts-china-india-as-global-trade-growth-accelerates-imf-says/articleshow/134907940.cms"
  },
  "original_language": "en",
  "account": "Bangkok — The International Monetary Fund's new chief economist, Silvana Tenreyro, highlighted how AI has fueled robust growth in China, India, and several other Asian nations, surpassing the overall growth rate in global trade, according to a report on Tuesday. Speaking at the IMF and World Bank annual meetings, Tenreyro noted that without this AI-driven boost, global trade would have expanded at a significantly slower pace.\n\nA long-standing professor at the London School of Economics, Tenreyro began her role at the IMF in August. She emphasized the IMF's ongoing concerns about elevated debt levels, urging nations to trim budgets to curb deficits. She also suggested that central banks should adopt more restrictive measures, such as raising interest rates to rein in inflation and bring it back to target levels.\n\nTenreyro pointed out that the surge in AI-related investments and trade has been a significant catalyst for global growth. However, she warned that AI supply chains are highly concentrated in a limited number of countries and sectors, which could create potential bottlenecks. While global trade expanded by 8.3% between 2023 and 2025, trade in AI surged by an impressive 29%, resulting in a much faster increase in trade in that sector.\n\nShe cautioned that a sharp correction in AI-related market values, along with cybersecurity risks associated with AI, could also dampen growth and heighten financial stability risks. The IMF's baseline forecast assumes the AI boom will eventually fade, but another scenario shows that sustained AI-driven productivity gains could mitigate its inflationary effects. If the AI boom continues without generating productivity gains, growth benefits would be diminished, and inflation could rise, the report explained.\n\nMoreover, if the AI boom does not translate into productivity gains, the gains from this boom would be smaller, and inflation would be higher, Tenreyro added. She concluded by stating that the IMF is refining its research to better understand the AI's impact on employment.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}