A US AI boom would lift growth well beyond tech sector
Discover how the anticipated AI boom will drive growth across various sectors, enhancing productivity and investment opportunities for the future.
An anticipated AI boom is set to significantly enhance growth beyond the technology sector. By 2027, real gross output growth could reach approximately 4.2%, exceeding baseline projections by more than one percentage point.
This growth is driven by a sustained increase in technology capital spending, which fuels demand for computing capacity, data centres, and software. The resulting higher equity valuations and looser monetary policy further bolster investment and broader business activity.
As the benefits of AI adoption permeate various sectors, construction output is projected to rise around 6% above baseline by 2029, marking the largest uplift among major sectors. Additionally, mining and professional services are expected to experience notable gains, driven by increased investment and demand across supply chains.
Over time, productivity improvements will help maintain this expansion, even as monetary policy tightens in response to inflationary pressures. Manufacturing output is anticipated to remain around 3% higher by 2029, with broad-based gains across services and other industries.
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