AI boom masks underlying industrial decline in Japan, South Korea, and Taiwan
By
The Economist
Lacks bite. And filling. And a copy-editor at the bakery.
Summary
Despite impressive headline economic numbers in north-east Asia (Taiwan growing at 14%, South Korean corporate profits up 159%, record Japanese profits), the article suggests this apparent boom is actually concealing deeper industrial problems. The strong export performance is largely driven by artificial intelligence-related demand, masking underlying structural rot in these economies.
Key quotes
· 4 pulledTaiwan, a rich economy that in a good year might be expected to expand by 3-4%, is growing at 14%.
Operating profits at South Korea's biggest firms ballooned by 159% over the past year, thanks chiefly to its mighty exporters.
Since the covid-19 pandemic its exports have grown four times faster than its economy.
On the face of things, north-east Asia is in the midst
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