09 July 2024

How GenAI will change the World Economy

Author: Innes McFee, Oxford Economics
Author: Henry Worthington, Oxford Economics

After more than a decade of persistently weak productivity growth across advanced economies, there is hope that generative AI might help to arrest the slide. The timing could not be better. Workforce aging and the lack of reform to pension ages mean that labour supply is going to be less supportive for economic growth in the decades to come. We estimate that, relative to the pre-pandemic period, the contribution of labour to potential growth will halve over the next decade in advanced economies, and drop even more in emerging markets.  

Read Innes McFee and Henry Worthington’s essay How GenAI will change the World Economy.