AI boom bolstered growth in global trade, benefiting China and India, IMF says
SPY•IMF chief economist Silvana Tenreyro said strong AI demand bolstered growth in China, India and other Asian countries, and that global trade would have grown far more slowly without the boost. She also urged governments to cut budgets and central banks to pursue more restrictive policies, including raising interest rates.
1. AI supports trade growth
Strong demand for AI has bolstered growth in China, India and other Asian countries, outpacing overall growth in global trade, IMF chief economist Silvana Tenreyro said. She said global trade would have grown at a far slower rate without the AI boost.
2. IMF flags debt and inflation
Tenreyro said the IMF remained concerned about high debt levels and urged countries to start cutting budgets to reduce deficits. She said central bankers should pursue more restrictive policies, including raising interest rates to get inflation back to target.
