IMF says AI investment keeps global growth around 3% but brings massive disruption
SPY•IMF Managing Director Kristalina Georgieva said AI infrastructure investment is keeping global growth around 3%, while IMF research indicates AI could augment, downgrade or eliminate about 40% of jobs worldwide and 60% in advanced economies.
1. Investment supports growth
Georgieva said the AI investment boom is delivering a demand and investment shock that could boost growth by 0.5 to 1 percentage point in advanced Asian economies and 0.2 to 0.8 percentage point in emerging Asian economies. She said it is helping keep the world economy growing around 3% despite an energy supply shock. The IMF forecast global growth of 3% in 2026 in July and planned to release an updated outlook on Tuesday.
2. Jobs face disruption
Georgieva said IMF research indicates around 40% of jobs will be augmented, downgraded or eliminated by AI, rising to 60% in advanced economies. She said the shift from labor to capital could affect jobs, growth, education and government tax revenue. An initial study found that 10% of US jobs already required AI skills.
3. Leaders debate risks
Singapore President Tharman Shanmugaratnam said demand for graduates’ first jobs was falling and warned that AI could widen the divide in growth and job creation between developing and advanced economies. World Bank President Ajay Banga said he was not convinced AI would destroy entry-level jobs, and said the bank was focused on using “small AI” to improve productivity for farmers, health clinics and teachers.
