Economic Crosscurrents Mount as Energy Shock Meets AI Wave (1)

The global economy is increasingly captive to two opposing forces.

A recent flurry of data underscores how the AI investment boom is propelling trade, investment and consumption in some corners, while the energy shock from the Iran war is inhibiting them in others.

Growth in Taiwan jumped almost 14% last quarter, the fastest expansion since 1987, and South Korea’s exports advanced by almost 50% for a second straight month in April as chip exports surged 173% from a year earlier.

By contrast, the Bank of Japan this week slashed its economic growth forecasts and held interest rates steady, with weakness ...