The International Monetary Fund (IMF) has said productivity gains driven by artificial intelligence (AI) could help offset the economic pressures arising from Asia’s ageing population.
Speaking at the launch of an IMF book examining the challenges and opportunities facing Asia, Managing Director Kristalina Georgieva identified demographic shifts, economic integration and technological advancements, particularly AI, as three major transformations shaping the region.
Georgieva said AI could increase growth in advanced Asian economies, where ageing populations are more prevalent, by between 0.5 and one percentage point. She added that productivity improvements generated by the technology could more than compensate for the economic pressures associated with demographic changes.
According to findings presented in the book, countries including China, Japan and South Korea could see their working-age populations decline by nearly 25 per cent between now and 2050. The report suggests that AI-driven productivity gains could help counterbalance the impact of this decline.
However, Krishna Srinivasan, director of the IMF’s Asia and Pacific Department, cautioned that policymakers must balance the potential benefits of AI adoption against the risk of widening economic disparities among Asian countries.
He noted that advanced economies were more exposed to AI-related changes but were also better positioned to benefit from the technology. Emerging markets, meanwhile, faced lower exposure but had fewer resources and capabilities to capitalise on its potential gains.
Srinivasan said reforms aimed at improving skills and productivity could accelerate AI adoption by a decade or more.
Georgieva also highlighted the potential economic benefits of greater regional integration, saying deeper trade agreements and reduced non-tariff barriers could increase Asia’s gross domestic product (GDP) by approximately 1.8 per cent over the long term.
The remarks were made during the IMF and World Bank annual meetings in Bangkok.
