Artificial Intelligence Could Help Offset Asia's Aging Population, According to the International Monetary Fund

The International Monetary Fund (IMF) announced at its annual meetings in Bangkok that artificial intelligence productivity gains could alleviate labor force problems stemming from Asia's aging population.

Regional Impacts of Artificial Intelligence

International Monetary Fund Managing Director Kristalina Georgieva stated at the IMF and World Bank meetings held in Bangkok that demographics, economic integration, and technology are the three fundamental transformations facing the region. Artificial intelligence is expected to boost growth in advanced Asian economies by 0.5 to 1 percent.

It is projected that countries such as China, Japan, and South Korea could lose approximately 25 percent of their working-age populations by 2050. It is stated that this situation could be balanced with artificial intelligence productivity gains.

Policy and Trade Recommendations

Krishna Srinivasan, Director of the IMF's Asia and Pacific Department, warned that policymakers must balance the benefits provided by artificial intelligence with the risk of inequality between countries.

Kristalina Georgieva noted that deeper regional trade agreements and reduced non-tariff barriers could increase Asia's gross domestic product by approximately 1.8 percent in the long term.