Spending on artificial intelligence (AI) infrastructure is helping global growth stay near 3 per cent despite high energy costs, International Monetary Fund (IMF) managing director Kristalina Georgieva said on Monday, 12 October.
Speaking at the IMF and World Bank annual meetings in Bangkok, she said Asian economies that supply AI hardware were among those benefiting, according to Reuters.
She said the investment boom could add 0.5 to 1 percentage point to growth in advanced Asian economies and 0.2 to 0.8 percentage points in emerging Asian economies. These are possible gains, rather than confirmed growth results.
Energy costs still weigh on growth
Georgieva said AI spending was helping to offset the economic harm from higher energy prices linked to the war in the Middle East.
The IMF’s July forecast put global growth at 3 per cent in 2026 and 3.4 per cent in 2027. It said energy-importing countries faced pressure from the war, while countries supplying technology were benefiting from AI demand.
An updated forecast is due on Tuesday, 13 October, according to Reuters. Her latest comments do not replace that formal forecast.
AI investment also carries risks
In Singapore on 7 October, Georgieva warned that high energy prices, heavy public debt and risks from AI investment could all threaten growth.
She said AI investment, measured as a share of economic output, could exceed the scale of earlier spending on railways, electricity grids and telecommunications networks.
She also warned that AI companies must deliver stronger productivity and earnings to justify their high market values. If earnings fall short, the effects could spread through financial markets.
According to BusinessDay’s report, Georgieva said AI hardware and related technology products account for more than a tenth of global goods trade.
She warned that the benefits were concentrated in a relatively small group of economies, which could leave other countries further behind.
