IMF chief says AI spending supports global growth around 3%

Investment in artificial intelligence infrastructure is helping sustain global economic growth at around 3% despite an energy supply shock, International Monetary Fund Managing Director Kristalina Georgieva said in Bangkok on October 12. Asian hardware suppliers, including Thailand, are among the beneficiaries, she said.

Speaking as the weeklong IMF and World Bank meetings began, Georgieva said the surge in AI-related demand and investment could add half to one percentage point to growth in advanced Asian economies. For emerging Asian economies, she put the potential boost at 0.2 to 0.8 percentage point. The IMF's July forecast projected 3% global growth in 2026.

Georgieva identified the US, China and India as the leading producers within the AI supply chain, while noting that Asia is home to many companies developing the infrastructure. She said the technology would reshape employment, education and taxation as economic activity shifts from labor toward capital.

The IMF estimates that AI could eventually augment, downgrade or eliminate 40% of jobs, Georgieva said. She cited an initial study finding that AI skills were already required for 10% of US jobs.

World Bank President Ajay Banga said the bank was concentrating on smaller-scale AI applications that do not rely on large language models, aiming to improve productivity in farming, healthcare and education in emerging markets.

At the same event, Singapore's President Tharman Shanmugaratnam urged governments to tackle declining demand for graduates entering employment. He also warned that a passive response to AI could widen the gap between developing and advanced economies in growth and job creation.