Prolonged high oil prices could 'crimp' AI boom, WTO warns
12 hours ago
- #WTO
- #AI Boom
- #Global Trade
- High oil prices due to Middle East conflict could negatively impact the AI boom, warns WTO chief economist.
- The WTO identifies the war's effect on energy and fertilizer costs as a major risk to the global economy.
- AI investment, which offset trade impacts from Trump's tariffs in 2025, faces uncertainty due to energy-intensive demands.
- 70% of North America's investment growth in early 2025 was AI-related, highlighting the sector's importance.
- Global goods trade grew by 4.6% in 2025 despite Trump's tariffs, aided by strong Asian exports.
- WTO predicts a sharp slowdown in global goods trade growth to 1.9% in 2026, with risks from prolonged high energy prices.
- Extended high energy prices could reduce goods trade growth by 0.5% and threaten food security.
- The WTO's relevance has waned under Trump's second term, with the US ignoring trade rules and other economies breaking commitments.