The rapid advancement of artificial intelligence (AI) is sparking debate among economists and investors about its potential impact on inflation and the global economy. While some see AI as a powerful deflationary force, others highlight its potential to boost productivity and GDP growth. This article explores the arguments for and against AI’s deflationary impact and examines its potential to revolutionize various industries.
Despite recent improvements in economic growth, deflation persists in China, raising concerns about its potential impact on export destinations. However, analysts suggest that this impact has been minimal, with Chinese goods representing a small portion of final consumption in export markets and destination countries experiencing service price inflation that overshadows any disinflationary effects.
