AI boom bolstered growth in global trade, benefiting China and India, IMF says

Silvana Tenreyro, the IMF chief economist, said on Tuesday that strong demand for artificial intelligence has lifted expansion in China and India as well as other Asian economies, outpacing overall growth in global trade, according to Business Recorder. Speaking to journalists during the yearly gathering of the IMF and World Bank held in Bangkok, she said global trade would have expanded far more slowly without the AI boost.

She also voiced concern over high debt levels, asking nations to begin reducing deficits through budget cuts. Central bankers, she added, should adopt a firmer stance, such as raising interest rates, to bring inflation back toward target. Taken together, her remarks combine a call for fiscal restraint with a push for tighter monetary policy.