Artificial intelligence will offset the burdens of tariffs, and it is not a zero-sum game for the US and China, said an economist known as Dr. Doom.
Nouriel Roubini, chairman at Roubini Macro Associates, who became famous for accurately predicting the 2008 financial crisis, said that AI will deliver a new era of “American exceptionalism”, and is expected to help economic growth increase to a maximum of 4 percent by the end of this decade.
He noted that the pace of productivity improvement has accelerated. The benefits of AI will outweigh the combined drag of tariffs, fiscal risks, and geopolitical shocks by a ratio of four to one.
He stated that technology is the primary driver, while everything else, including geopolitics, is secondary. Technology could account for around half of the potential 4 percent growth.
The biggest impact of the Donolad Trump administration's destructive policies, such as restricting immigration and attacking the fairness of the Federal Reserve, will drag down economic growth by 50 basis points.
Besides, AI is a race between the US and China, but it is not a zero-sum game, said Roubini. Both countries can do well.
