IDB Forecasts AI Could Boost Latin American Economy 5.1 Percent

The Inter-American Development Bank estimates that the broad adoption of artificial intelligence could increase the economy of Latin America and the Caribbean by 5.1 percent over the next decade. The bank warns that the economic benefit depends heavily on workforce adaptation, noting that wages could drop by as much as 20.9 percent if workers fail to transition into expanding AI-driven sectors.

Conversely, the bank projects that wages could rise between 2.3 and 5.3 percent if the workforce successfully adapts to the new technology. These projections highlight a significant disparity in potential outcomes based on labor market flexibility and training.

In separate remarks, IDB President Ilan Goldfajn advocated for increased financing and minimum-price protections for critical-minerals supply chains. He proposed the creation of a "buyers' club" designed to differentiate minerals produced under strict labor and environmental safeguards from those produced without such protections.