IMF says AI investment boosts Asia growth but risks job disruption

AI drives regional economic expansion

IMF Managing Director Kristalina Georgieva stated that strong investment in AI infrastructure keeps global growth around 3 percent despite energy supply shocks. She noted that this technology could lift growth in advanced Asian economies by between half and one percentage point. Emerging markets are projected to see gains ranging from 0.2 to 0.8 percentage points through similar productivity increases.

Demographic pressure faces offset

Findings presented at the launch of an IMF book suggest AI adoption could offset demographic pressure from shrinking workforces in countries like China and Japan. The director cautioned that policymakers must balance these benefits against the risk of widening disparities between advanced and emerging economies. She emphasized that capturing productivity gains is essential to neutralizing the loss of working population expected by 2050.

Job market disruption concerns

Delegates were warned about a potential job tsunami threatening Asia's youth as AI investment surges. Georgieva explained that the shift into higher gear for AI is already delivering demand and investment shocks to the world economy. Leaders at the summit stressed the need for swift mitigation if young workers are to secure a place in the future workforce.