IMF says AI investment keeps global growth around 3% but brings massive disruption

IMF Managing Director Kristalina Georgieva said AI infrastructure investment is helping keep global growth near 3 percent and could raise growth in advanced Asian economies by 0.5 to 1 percentage point and in emerging Asian economies by 0.2 to 0.8 point. She also described labor disruption as a slow-moving tsunami affecting roughly 40 percent of jobs globally and up to 60 percent in advanced economies.

The report includes real counterevidence. World Bank President Ajay Banga said he is not convinced entry-level work will be broadly destroyed and emphasized smaller AI systems that can improve farming, clinics, and teaching in emerging markets. Singapore President Tharman Shanmugaratnam nevertheless warned that reduced demand for first jobs could break the first rung of career ladders.