Published 24 hours ago • loading... • Updated 2 hours ago
IMF says AI investment keeps global growth around 3%, with major Asia benefits
The IMF said AI infrastructure spending could lift advanced Asian growth by up to 1 percentage point while affecting 40% of jobs worldwide.
On Monday, International Monetary Fund Managing Director Kristalina Georgieva opened the IMF and World Bank annual meetings in Bangkok, warning that artificial intelligence acts as a "slow-moving tsunami" disrupting global labor markets.
An artificial intelligence investment boom acts as a "demand shock, an investment shock" offsetting energy supply disruptions, keeping global growth steady at around 3%, Georgieva reported.
IMF estimates show artificial intelligence could augment, downgrade, or eliminate 40% of jobs globally, rising to 60% in advanced economies as technology hollows out routine tasks while increasing low-paying construction roles.
Singapore President Tharman Shanmugaratnam warned that "the first rung in employment" for graduates sees less demand, urging governments to act against a "new divergence" in job creation between developing and advanced economies.
World Bank President Ajay Banga is prioritizing "small AI" tools that avoid large language models to drive productivity for farmers and educators in emerging markets, aiming to bridge adoption gaps.
On Tuesday, the International Monetary Fund (IMF) slightly increased its growth forecast for the world economy in 2026, now expected to reach 3.1%. I ...