Heavy investment in artificial intelligence infrastructure is helping support global economic growth at around 3%, while creating significant opportunities for Asian economies involved in manufacturing the technology’s hardware.
International Monetary Fund (IMF) managing director Kristalina Georgieva said the AI investment boom was already creating a major increase in demand and investment, particularly across Asia.
She said the shift could lift growth in advanced Asian economies by between 0.5 and 1 percentage point, while emerging Asian economies could see an increase of between 0.2 and 0.8 percentage points.
“AI, love it, hate it. It’s already here,” Georgieva said during the IMF and World Bank meetings in Bangkok, Thailand.
The IMF projected global growth of 3% for 2026 in July and is expected to release an updated forecast.
AI Could Reshape Millions Of Jobs
Georgieva described AI as a “slow-moving tsunami” that could have major consequences for employment, education, economic growth and government tax revenues.
The IMF estimates that AI could eventually augment, downgrade or eliminate 40% of jobs, as economies shift towards greater use of technology and capital.
While repetitive jobs are declining, demand is growing in areas such as construction and data centres.
World Bank president Ajay Banga said the institution is also using smaller-scale AI systems to improve productivity in areas including agriculture, healthcare and education in emerging markets.
Asia Positioned To Benefit
The US, China and India remain major players in the AI supply chain, but Georgieva highlighted the growing importance of Asian economies that manufacture and supply the infrastructure needed to power AI systems.
Thailand was among the countries highlighted as a potential beneficiary of this investment.
However, leaders warned that AI could also deepen inequality if developing economies fail to prepare their workers.
Singapore President Tharman Shanmugaratnam raised particular concerns about graduates struggling to secure their first jobs as companies reduce demand for entry-level workers.
He warned that AI could create a new divide between advanced and developing economies if governments do not act quickly to ensure the technology creates opportunities for workers.
For emerging markets, the challenge will be to capture AI’s productivity benefits while ensuring that technological progress translates into more jobs and broader economic opportunity.
Main Image: Reuters
