"If the price of energy continues to be elevated for the whole year, that could put a crimp on the AI boom. Because that investment is very concentrated in a number of very large firms, and the technology is still ultimately unproven in terms of how much it can deliver, there is a bit of uncertainty there in terms of where the future's going."
"In the first three quarters of last year, about 70% of all investment growth in North America was accounted for by AI-related goods. By comparison, in the three years before the catastrophic US housing crash of 2008, property made up 30% of investment growth."
"The WTO suggested that a year-long period of high energy prices would knock an additional 0.5% off goods trade growth, and jeopardise food security. Risks to the forecast are tilted to the downside, and are mostly linked to the conflict in the Middle East."
The WTO's chief economist warns that extended high oil prices resulting from Middle East conflict pose the primary risk to global economic growth. AI investment, which offset trade losses from Trump's tariffs in 2025 by accounting for 70% of North American investment growth, faces potential constraints due to its energy-intensive nature. While global goods trade expanded 4.6% in 2025 despite protectionist policies, the WTO projects growth will slow to 1.9% in 2026. A year-long energy price shock could reduce goods trade growth by an additional 0.5% and threaten food security. The concentration of AI investment among few large firms and unproven technology delivery capabilities add uncertainty to the sector's future trajectory.
Read at www.theguardian.com
Unable to calculate read time
Collection
[
|
...
]