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BMO Notes Leaders in Artificial Intelligence Exports

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A large portion of the spending wave on the Artificial Intelligence (AI) buildout in the United States is in fact directed at imports, said Bank of Montreal (BMO).

Of course, some exporting economies are on the other side of those sales, pointed out the bank.

BMO has recently noted the blast-off in Taiwan, whose exports to the U.S. have rocketed 98% year over year in the most recent three months. This, in turn, has lifted that economy's real gross domestic product by almost 14% in the last year alone, the fastest growth in nearly 40 years.

A little less spectacularly, but still impressive, Vietnam grew more than 8% year over year in Q1, while Indonesia was up 5.6%, and the large and more mature South Korean economy has expanded a solid 3.6% year over year, added the bank.

All are faster than pre-COVID norms. On a weighted basis, these four have accelerated from 3.3% GDP growth a year ago to 6.8% in Q1.

With a total weight of about 4% of global GDP, these medium-sized economies account for 0.3 percentage point -- or about 10% -- of the world's current 3% growth, according to BMO.

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