IMF: Asia-Pacific Economies Shaped by Energy Shocks and AI Boom
IMF Asia-Pacific director says energy shocks and an AI-driven tech boom are reshaping regional growth, trade and hiring, with AI-linked job demand down 10%.
The story in focus
At an IMF press briefing in Bangkok on October 14, Asia-Pacific director Krishna Srinivasan said energy shocks since February and an AI-driven technology boom are reshaping regional economies, with growth upgraded for some tech beneficiaries and cut for others.
- Energy shocks from February hit a region highly reliant on imported oil and gas, notably from the Middle East.
- First-half 2026 export growth was led by tech products, backed by AI infrastructure demand and data-center investment.
- IMF research finds employer demand down 10% in jobs more exposed to AI, though the decline has stabilized.
Energy shocks and policy response
Speaking at the Annual Meeting in Bangkok on October 14, Srinivasan said energy shocks beginning in February struck a region heavily dependent on oil and gas, much of it imported from the Middle East. Some economies diversified import sources, compressed demand and used more alternative energy, while major economies drew down inventories, he said.
A broad set of policy measures was also deployed to contain inflation, ease supply disruptions and support incomes, according to the briefing.
Trade and the technology boom
Srinivasan said the technology boom gave a sizable boost to several major Asian economies, with export goods accelerating sharply in the first half of 2026, driven mainly by technology products. Strong AI infrastructure demand lifted semiconductor demand and data-center investment.
He added that trade held up better than expected despite tariffs, helped by export-market diversification, robust intra-regional trade and deeper trade agreements. Growth surprised on the upside in India, while Korea and some ASEAN economies were revised up on the tech boom; countries not benefiting directly saw forecasts revised down.
Labor market effects
The IMF presented what it called first empirical evidence on AI's effects on Asia's labor markets: a negative effect on hiring in more AI-exposed jobs, with employer demand down 10%. That decline has stabilized even as AI capability increased, which Srinivasan said suggests AI is reshaping work more than eliminating it, with employers seeking AI skills. He listed structural reform priorities including youth unemployment, social protection, energy security and deeper regional integration.
What did the IMF say about AI's effect on hiring in Asia-Pacific?
IMF research found a negative effect on hiring in jobs more exposed to AI, with employer demand down 10%, but the decline stabilized as AI capability rose, suggesting employers increasingly want AI skills.
Sources & further reading
- IMF Asia Pacific Department Press Briefing ↗mediacenter.imf.org
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