AI Spurs Economic Growth Amid Risks, Says OECD Report

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Windhoek:Artificial Intelligence is both a driver of growth and a source of risk for the global economy, as detailed in the latest Economic Outlook Interim Report from the Organization for Economic Cooperation and Development (OECD).According to Namibia Press Agency, the report highlights that AI-related investment and production have shown rapid growth in the first half of 2026, helping to mitigate the economic effects of the ongoing Middle East conflict. Despite this, the global economy's growth rate slowed to 2.6 percent during this period, compared to 3.6 percent in the latter half of 2025.The OECD report notes that several countries saw a boost in real GDP growth in the second quarter of 2026 due to increased investment in data center infrastructure and technology equipment. This trend benefited nations heavily invested in technology and construction components.The global economic growth forecast stands at 2.9 percent for 2026 and 3.0 percent for 2027. AI-related spending and production are expecte d to continue supporting growth in many G20 economies, offsetting weaker investment in other business sectors.The report suggests that expanding AI investment and technology production could further boost economic growth in the near term, with AI technologies offering potential productivity gains once integrated into production processes.However, the OECD cautions that energy shortages could hinder growth in energy-dependent industries like AI. The report also warns of potential delays in returns on AI investments due to possible bottlenecks in electricity or advanced semiconductors.Security concerns surrounding AI may impede its development or adoption. Additionally, AI firms' reliance on complex financing structures and rising credit risk could exacerbate any sudden shifts in investor sentiment.