AI Boom Bolstered Growth in Global Trade, Benefiting China and India, IMF Says - BusinessWorld Online
The IMF said AI-related trade grew 29% and helped lift global trade and growth, while concentrated supply chains and cybersecurity risks remain a concern.
- On Tuesday, IMF chief economist Silvana Tenreyro said strong demand for AI has bolstered growth in China, India, and other Asian countries, significantly outpacing overall global trade growth.
- Global trade grew 8.3% between 2023 and 2025, while AI-related trade surged 29%; without this boost, overall growth would have been only 4.6%, Tenreyro noted.
- Tenreyro warned that AI supply chains remain highly concentrated in specific sectors, creating chokepoints, while cybersecurity threats and market corrections pose significant financial stability risks.
- At the annual meetings of the IMF and World Bank in Bangkok, Tenreyro stated, "It's basically an unwind of this boom that we are seeing," urging central bankers to raise interest rates.
- The IMF's baseline forecast assumes the AI boom will dissipate over time; if the trend persists without productivity gains, growth benefits could shrink while inflation pressures rise.
15 Articles
15 Articles
![[your]NEWS](/_next/image?url=https%3A%2F%2Fgroundnews.b-cdn.net%2Finterests%2Ffb6dc495f74049f513563c33352175eaa0ecd509.jpg%3Fwidth%3D24&w=64&q=75){kind=small}
AI Boom Fuels Global Trade Growth as IMF Flags Supply Chain and Financial Risks
Artificial intelligence investment has become a major contributor to global trade growth, with China, India and other Asian economies benefiting from rising demand for AI-related products. The IMF cautions that concentrated supply chains, elevated public debt and uncertainty over productivity gains could pose risks to the global economic outlook.
AI boom benefiting India and China, bolstering growth in global trade: IMF
IMF chief economist Silvana Tenreyro flags that artificial intelligence investments have bolstered growth across India and China while warning against concentrated supply chains, high fiscal deficits and rising inflation risks.
AI boom bolstered growth in global trade, benefiting China and India, IMF says
The strong demand for AI has bolstered growth in China, India and other Asian countries and outpaced the overall growth in global trade, the IMF’s new chief economist Silvana Tenreyro said on Tuesday. Global trade would have grown at a far slower rate without the AI boost, Tenreyro told reporters at the annual meetings of […]
AI boom lifts China, India as global trade growth accelerates, IMF says
Silvana Tenreyro, the IMF's new chief economist, highlighted the robust growth in AI-related trade. This growth has significantly outpaced overall global trade rates during recent years. While the IMF acknowledges high debt levels, it encourages countries to cut budgets to reduce deficits. Tenreyro noted that central banks should adopt restrictive policies to manage inflation effectively.
Coverage Details
Bias Distribution
- 62% of the sources lean Right
![[your]NEWS](/_next/image?url=https%3A%2F%2Fgroundnews.b-cdn.net%2Finterests%2Ffb6dc495f74049f513563c33352175eaa0ecd509.jpg%3Fwidth%3D60&w=128&q=75)
Factuality
To view factuality data please Upgrade to Premium
