AI Could Lift Global Growth By 0.8%, Says IMF Chief

(MENAFN- KNN India) New Delhi, Feb 21 (KNN) Artificial intelligence (AI) could raise global economic growth by nearly one percentage point, potentially pushing the world economy beyond its pre-pandemic trajectory, said Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF).

Speaking at the India AI Impact Summit, Georgieva cited IMF research estimating that AI could lift global growth by about 0.8 percent.

“Based on what we know, AI can lift global growth by almost a percentage point, we say 0.8 percent. It would mean that the world would grow faster than it did before the COVID pandemic,” she told PTI.

Boost to India's Viksit Bharat Vision
Georgieva said faster global expansion would translate into greater economic opportunities and job creation. Referring to India's long-term development roadmap, she noted that AI-driven productivity gains could significantly strengthen the country's growth trajectory.

“This is the magnitude that we see for India, and it would mean that India's Viksit Bharat is achievable,” she said.

India has set a target of becoming a developed nation by 2047, with aspirations of building a USD 30 trillion economy. Analysts note that sustained productivity improvements driven by AI adoption across services, manufacturing and digital public infrastructure could accelerate progress towards this goal.

Her remarks come as India positions itself as an emerging global AI hub, leveraging its strong digital payments ecosystem, technology talent base and supportive policy environment to attract investment.

Warning on Labour Market Disruption
However, the IMF chief cautioned that AI's transformative potential would also bring significant labour market disruption.

“We calculated this risk is very high. We see the impact of AI like a tsunami. Globally, 40 percent of jobs will be affected by AI. In emerging markets, 40 percent, and in advanced economies, 60 percent,” she said.

The IMF has previously highlighted that while AI can enhance productivity and innovation, it could also widen inequalities if workforce adaptation, skilling and social protection measures do not keep pace.

Georgieva's assessment underscores both the growth potential and structural challenges posed by AI, as countries seek to harness technological advancement while managing its economic and social implications.

(KNN Bureau)

MENAFN21022026000155011030ID1110770732