Episode 38 The Next Growth Model: How East Asia Can Thrive in an AI-Driven World
Accelerating Development: Ideas for ImpactShow Notes
Global private investment in generative AI reached $34 billion in 2024, while AI-related exports account for 34% of GDP in Malaysia and 32% in Viet Nam. Yet growth in East Asia and Pacific is projected to slow from 5.0% in 2025 to 4.2% in 2026. In this episode, we explore how one of the world's most dynamic regions can sustain growth in an era of slowing productivity, rising trade uncertainty, and rapid technological change. Drawing on the East Asia and Pacific Economic Update 2026, we examine the opportunities and challenges of industrial policy in the digital age—from investing in human capital and opening services markets to supporting innovation while avoiding costly policy mistakes. We also discuss how AI is reshaping competitiveness and what governments can do to help firms and workers benefit from the next wave of growth. Generated with AI using wondercraft.ai and guided by our experts. Read more at: https://www.worldbank.org/en/publication/east-asia-and-pacific-economic-update
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