economy
Prolonged high oil prices could ‘crimp’ AI boom, WTO warns
Iran war and its impact on energy and fertiliser costs is the main risk to the global economy, report says
TL;DR
- Conflict in the Middle East poses the main risk to the global economy, primarily through elevated energy and fertilizer costs.
- Prolonged high oil prices could "crimp" the AI boom, as the technology is energy-intensive.
- AI-related goods accounted for approximately 70% of North America's investment growth in the first three quarters of last year.
- Global goods trade is expected to slow to 1.9% this year, with a prolonged energy shock potentially reducing growth by another 0.5%.
- A prolonged interruption in energy and fertilizer supply from the Gulf region could negatively impact food systems.