World Bank Report: AI to Help Exceed Growth Expectations in East Asia and Pacific

The World Bank released its latest East Asia and Pacific Economic Update on October 6, saying that rapid development of artificial intelligence (AI) is expected to boost manufacturing and exports of high-tech products, helping several economies in the region grow faster than expected in 2026.

The report noted that while growth remains uneven across economies and sectors, the rising adoption of AI is creating new opportunities. However, AI adoption among individuals and businesses in the region, though increasing, still lags behind advanced economies. Companies face challenges including high costs, a shortage of specialized expertise, and concerns over security and privacy. The report suggested that adopting and adapting existing technologies, especially more accessible AI tools, may be more feasible for most countries.

According to the report, AI has not yet significantly affected automatable jobs, but it is reshaping skill demands. Employers increasingly need workers who combine AI expertise with analytical and social skills.

Carlos Felipe Jaramillo, World Bank Vice President for East Asia and Pacific, said the region is benefiting from the surge in global AI-related activity thanks to its deep integration into global value chains and economic dynamism. The main challenge for regional growth is turning the advantage in AI-related production into broader application to boost productivity and create more and better jobs for millions of people. If countries act decisively, AI could become a powerful engine for opportunity, income growth, and a better future.