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US growth boosted by AI, but no sign of a turning point higher

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US growth boosted by AI, but no sign of a turning point higher

Business News Tech AI US growth boosted by AI, but no sign of a turning point higher

US growth boosted by AI, but no sign of a turning point higher

Economists estimate the growth potential of the US economy to be around 2%, whereas President Donald Trump aspires to double it. Business investments are escalating, primarily driven by the demands for data centers and enhanced AI capabilities, which can positively affect GDP growth. However, the influence of artificial intelligence on productivity is still unpredictable, and tariff strategies for cutting imports yield mixed results, affecting the market dynamics significantly.

In his 2025 inaugural address, President Donald Trump said his return to the White House heralded the start of a new golden age for the US, especially for the economy. He and his advisers contend his plans to slap tariffs on imports, deport some immigrants and curtail the arrival of others, cut personal and corporate taxes and slash regulations would unleash growth, reshore manufacturing, and lead to a boom in the economy's productive capacity. The US economy may indeed be undergoing profound change, though it is unclear how much of the transformation stems from Trump's policies and how much from the rapid development of artificial intelligence technologies whose impact on jobs, prices and output remains to be seen.

The picture is somewhat mixed. GDP trudges along Gross domestic product measures the total output of goods and services in an economy, and the rate it expands year to year is often cited as a benchmark for economic success.


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