A decade of shocks has left much of the developing world weakened just as AI begins reshaping the global economy, World Bank economists conclude in a new report.
Why it matters: A series of shocks — the COVID-19 pandemic, the Ukraine war and now the Iran war — have buffeted the world's poorest countries particularly hard. These countries risk being poorly positioned to benefit from an AI-driven productivity and spending super-cycle.
The globe's poorest countries will enter this period burdened by debt, weak investment and years of stalled development, with little capacity to build the infrastructure and skills needed to share in those gains.
Oil prices have defied predictions of even bigger increases than we've seen — but the markets' shock absorbers could easily wear out later this summer unless the Strait of Hormuz opens soon, analysts warn.
Why it matters: If the stockpiles run too low and oil prices surge, prices at the pump — which have been falling lately — could spike again as the midterm elections approach.
