AI Investment Drives Global Trade Growth, Boosts Asian Economies: IMF
IMF reports AI investment fuels global trade growth, with Asia leading as China and India benefit from tech-driven economic shifts.
POLICY Wire — Washington, D.C. — The rapid expansion of artificial intelligence is fueling stronger economic growth in China, India, and other Asian nations, outpacing the broader global trade trends, according to IMF chief economist Silvana Tenreyro.
The surge in AI-related investments is maintaining global economic growth at approximately 3%, with Asian economies reaping the rewards through increased demand for the hardware that powers the technology. India is seeing a rise in private AI funding and is working to enhance its technological readiness, though challenges remain.
Georgieva highlighted that the U.S., China, and India are central to the AI supply chain, with many key hardware suppliers based in Asia. Meanwhile, the IMF notes that workers with AI-related skills are earning more, but regions with high concentrations of these jobs are not necessarily seeing employment gains. The report also indicates that AI could affect up to 40% of jobs globally over time, reshaping labor markets and tax systems.
Reporting by Policy-Wire (PW)





