Chia Der Jiun, Managing Director of the Monetary Authority of Singapore, warned on June 17 at the Lujiazui Forum that the global economy’s heavy reliance on AI investment creates fragility that markets may not be pricing in. According to him, AI-driven capital expenditures now account for the majority of US investment growth and roughly half of US GDP growth in recent months. Hyperscaler data-center investments are projected to reach several hundred billion dollars in 2026, and any downward revision of these projections could trigger a sharp economic slowdown. Chia Der Jiun also highlighted the risk that AI-driven economic gains may concentrate among a few firms rather than broadly benefiting the economy and workers.
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