Can AI save aging East Asian economies?

HONG KONG — Declining fertility rates have long been viewed as a drag on economic growth, but the outlook may not be entirely bleak for Asian economies such as China, Korea and Japan, analysts said. Demographic pressure is accelerating investment in robotics and artificial intelligence (AI) in these rapidly aging yet technologically advanced countries, helping offset labor shortages and sustain productivity even as populations shrink, they argued. Analysts at Bank of America (BofA) Global Research said China, Korea and Japan could witness tech-driven growth despite their aging populations. The commitment of these countries to AI and automation is likely to intensify as they face shrinking labor pools and rising wage pressures, according to a Feb. 24 report on low fertility rates in Asia. “The region’s deep semiconductor, tech hardware and machinery ecosystems make deployment faster and cheaper than other regions,” the report’s authors said, noting that China and Korea were already at the forefront of developing and adopting cutting-edge technologies. Korea boasts the world’s

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