AI boom masks structural industrial decline in Japan, South Korea, and Taiwan
By
The Economist
Summary
The article argues that despite impressive headline economic numbers in Japan, South Korea, and Taiwan — driven by AI-related export booms — these economies are suffering from underlying "industrial rot." The strong export performance masks deeper structural problems in their domestic industrial bases, with the AI boom and China's economic shifts creating a deceptive facade of health.
Source
bskyAI boom masks structural industrial decline in Japan, South Korea, and Taiwanecon.stKey quotes
· 3 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.
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