Strong investment in artificial intelligence infrastructure is helping to keep global growth close to 3 per cent despite pressure from the energy shock, IMF managing director Kristalina Georgieva has said.
She described the rise in AI investment as a “demand shock” and an “investment shock”, with significant benefits for Asian economies, such as Thailand, that supply equipment to the global market.
Ms Georgieva said the investment momentum could add 0.5 to 1 percentage point to growth in the region’s advanced economies, while the boost for emerging Asian economies was estimated at 0.2 to 0.8 percentage points.
Speaking at the annual meetings of the IMF and World Bank in Bangkok, she said: “This shift to higher rates of investment is what is keeping the global economy’s growth close to 3 per cent, even though the energy supply shock is weighing on it.”