Strong investment in artificial intelligence infrastructure is keeping global growth at around 3 percent, with major benefits for many Asian economies that supply hardware, International Monetary Fund Managing Director Kristalina Georgieva said Monday at the IMF and World Bank annual meetings in Bangkok.
The AI investment boom is delivering a "demand shock, an investment shock" that could boost growth in advanced Asian economies by 0.5 to 1 percentage point, and emerging Asian economies by 0.2 to 0.8 percentage point, Georgieva said. The shift to higher investment levels is sustaining global economic growth at around 3 percent despite headwinds from energy supply disruptions.
"AI, love it, hate it. It's already here," Georgieva told participants on the first day of the weeklong meetings. "That shift into higher gear is what is keeping the world economy growing at around 3%, despite the fact we are being dragged down by the energy supply shock."
Thailand and other Asian economies are among the primary beneficiaries, as they supply the computing equipment and hardware necessary for AI infrastructure. The United States, China, and India are among the leading economies producing artificial intelligence technology, with other nations building the infrastructure required to support it.
The AI investment surge is also creating significant economic disruption. Georgieva warned of a "slow-moving tsunami" that could massively disrupt labor markets, taxation, and education systems. Singapore's President Tharman Shanmugaratnam cautioned during the meetings that demand for entry-level positions for recent graduates is declining as artificial intelligence use expands. He called on governments to address the issue quickly, noting that the problem is most acute at the bottom of the employment ladder where newly graduated workers typically enter the job market.
Evidence of this shift is becoming clear, particularly in sectors most exposed to AI's effects. Georgieva characterized the expected disruption as potentially affecting 40 percent of jobs globally. The technology is described as transformative, fundamentally changing how people work and live.
The IMF forecast global growth at 3 percent in 2026 in July. Energy supply shocks and rising debt burdens are pressuring economies, particularly developing nations, and these challenges are dominating discussions at the Bangkok meetings of the IMF and World Bank, which run through October 18.