WEF: Global GDP to grow by USD 56 trillion, driven by AI and tech

The global economy will grow by USD 56 trillion in 5 years, says a WEF report, driven by AI and tech. IT, manufacturing, and healthcare will lead growth, but the world also faces geopolitical challenges, fragmentation, and other economic risks.

The global economy is expected to expand significantly over the next five years, with global GDP projected to increase by about USD 56 trillion, driven by advancements in artificial intelligence, quantum computing, and other emerging technologies, according to a report by the World Economic Forum.

The report highlighted that the world is currently undergoing deep geopolitical, economic, societal, and technological transformations, which are creating both new challenges and opportunities for growth.

Key Growth Sectors and Drivers

It noted that the largest growth opportunities are likely to emerge in sectors such as information technology (IT) services, advanced manufacturing, energy and other technology-driven industries. In addition, sectors including agriculture, education, healthcare, tourism and transport services are also expected to benefit from increased innovation and modernisation.

According to the report, information technology services, advanced manufacturing, health and healthcare, and accommodation and leisure are expected to be among the key drivers of global economic growth over the next five years.

However, not all sectors are expected to grow at the same pace. Areas such as real estate, electronics, insurance and pensions, and chemicals and materials are less frequently identified as major growth drivers.

It stated, "There are also new opportunities amid change. Estimates suggest that, over the next 5 years, global GDP (gross domestic product) will increase by about USD 56 trillion in total. Powered by advances in AI, quantum and other technologies".

Challenges for Emerging Markets

The report also pointed out that emerging markets are facing new challenges as geoeconomic fragmentation and the expansion of AI and robotics begin to reshape traditional development models. These changes are raising questions about growth strategies that have historically relied on low-cost labour and export-oriented manufacturing.

Demographic shifts and geopolitical developments are expected to lead to divergent growth patterns across countries in the coming years. While some economies may benefit from technological advancements and structural changes, others may face slower growth due to evolving global conditions.

Balancing Opportunities and Risks

At the same time, the WEF report also highlighted that the advancements in frontier technologies and the acceleration of green and energy transitions are expected to support economic expansion.

However, the report flagged several risks that could act as headwinds, including rising debt levels, societal polarisation, and the impact of climate change.

So overall, the WEF outlined that while the global economy is entering a phase of transformation, the pace and direction of growth will depend on how countries adapt to technological change and manage emerging risks in an increasingly complex global environment. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)