The AI boom could make poor countries rich

The artificial intelligence boom is pushing demand for raw materials to levels not seen before, creating a major opportunity for countries that sell metals and other resources. Microchips now sit inside almost every modern device, while data centers needed for AI consume large amounts of resources.

Copper and gold prices have risen sharply. Copper reached a record high in August and currently stands at about $14,300 per tonne, while gold remains above its level at the same time last year despite falling from its record at the beginning of the year.

“

One must not be dazzled by windfall profits, but invest them in industrial development and the creation of an export economy.

Peru is already benefiting from the surge. OECD figures cited in the article show that the country supplied 11.3% of the world’s copper in 2024 and produced 3% of global gold. The International Monetary Fund sees the commodity cycle as a chance for Peru to accelerate long-term growth. Economic sentiment there has reached its strongest level since the pandemic, supporting consumption and investment, while the economy grew 3.4% last year.

“

These boom phases are inherent to commodities. There are always cycles in which prices first go up and then go down.

The article compares the current moment with the commodity boom of the 2000s and 2010s, when China’s rapid growth drove demand and copper and gold prices more than fivefold. Peru averaged 6% annual growth for more than a decade, while Brazil and Chile also used the price surge to build a strong middle class.

But the earlier boom also exposed the risks of dependence on raw materials. “These boom phases are inherent to commodities. There are always cycles in which prices first go up and then go down,” said Francesca Guadagno of the Vienna Institute for International Economic Studies. She said Brazil, Bolivia and Chile invested much of their higher revenues in social programs and later faced difficulties when prices fell. Michael Böheim of the Austrian Institute of Economic Research warned that countries should not be dazzled by windfall profits, but invest them in industrial development and an export economy.

“

This dependence is a problem. When revenues rose, Brazil, Bolivia and Chile invested much of the money in social programs. Once prices fell, these countries had problems.