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Boosting economic recovery after COVID-19: IMF Managing Director suggests ramping up investments in AI.

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The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has called for increased investments in artificial intelligence (AI) technology to propel economic growth, especially after the devastation left behind in the wake of COVID-19.

She said the IMF was concerned that growth after the pandemic might continue to be below the annual average which could affect efforts to improve the living standards of people.

Before COVID-19, the global economy was growing at an average of 3.8 per cent of gross domestic product (GDP) annually but after the pandemic, the global economy has been growing at an average rate of three per cent.

She said the global environment, therefore, needed something that would inject some dynamism into the world economy and that was where AI came in handy.

Ms Georgieva, who is on a three-day visit to Ghana, was speaking at an AI Summit which was held on the theme: “AI as a catalyst to transform economies in Sub-Saharan Africa.

It was jointly organised by the IMF and the Ministry of Finance in Accra yesterday.

Aside from Ms Georgieva, other speakers were the Minister of Communications and Digitalisation, Ursula Owusu-Ekuful; the President of Ashesi University, Patrick Awuah, and the Head of Google Research, Jason Hickey.

The IMF Managing Director said: “When we think of what can lift up productivity, by far our best chance is in investment in the green transition and in the adoption of AI”.

“We can see about three to five per cent productivity gain if we go forward with AI effectively.

We desperately need something that could inject some dynamism in the world economy,” she added.

Context

Data suggests that AI could increase global GDP by up to 14 per cent by 2030, with Sub-Saharan Africa poised to benefit significantly.

A report by the IMF has also highlighted that AI offers a myriad of opportunities for Sub-Saharan Africa, including improving agricultural productivity through precision farming, enhancing healthcare delivery through AI-driven diagnostics, boosting financial inclusion via fintech solutions and transforming educational outcomes through personalised learning experiences.

additional source : graphic news

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