Bank of America just dropped 5 bold predictions that could rock the US economy
US economy forecast: Bank of America Global Research has released a sweeping “state of the world” report outlining how the global economy could transform over the next five years and what it might mean for Americans’ jobs, wallets, and investments by 2030, as per a report.
The February 2025 report takes a deep dive into everything from artificial intelligence and robotics to clean energy, global trade, and cybersecurity, as per a GOBankingRates report. Here are five key takeaways that could shape the US economy in the years ahead.
1. AI and Robots Will Boost Productivity, But Jobs Will Evolve
The report highlights how artificial intelligence and robotics are set to reshape industries across the board, from manufacturing and healthcare to logistics. Bank of America noted about agentic AI, saying, “These fully autonomous agent and robot fleets may ultimately alter verticals heavily reliant on human capital and spark a corporate efficiency revolution that transforms the global economy,” as quoted in the report.
While automation could lead to major gains in productivity, it will also change the nature of work. Some roles could disappear, but others will evolve, especially in technology and science fields. Workers who upskill and adapt could benefit from higher pay and new opportunities as industries transform, as per the GOBankingRates report.
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2. Energy and Material Shortages Could Drive Up Prices
AI’s rise doesn’t just mean smarter machines, it also means soaring demand for power, data, and raw materials. The report warns that as AI systems and data centers expand, the need for energy, water, and commodities will spike, possibly leading to supply shortages.As a result, prices for certain natural resources could remain high, even as overall inflation cools. The shift could also benefit companies involved in energy production, mining, and chip manufacturing, such as NVIDIA, as they work to meet the growing demand, as per the GOBankingRates report.ALSO READ: What is Korean Fried Chicken that got Jensen Huang floored? Fried chicken stocks surge 30% – here’s how it is made
3. A Massive Boom in Clean Energy and Infrastructure
The report cites Oxford Economics’ estimate that the world will need about $94 trillion in new infrastructure by 2040, from roads and bridges to power lines and water systems. That’s an additional $500 billion in spending each year by 2030, much of it tied to government investment.
Clean energy is at the center of this boom, with more than $1 trillion already committed to projects like semiconductor plants, renewable power, and electric vehicles since 2021, as per the report. The upside os strong growth in construction, engineering, and technology sectors. The downside is a likely rise in US debt to fund these massive projects, as per the GOBankingRates report.
4. Nations Will Compete Harder Over Technology
Global competition over advanced technology is expected to intensify. Bank of America warns that trade restrictions, tariffs, and “country-first” policies could disrupt the free flow of goods, capital, and services that defined the 1990s and early 2000s, as per the GOBankingRates report.
Policies like “Europe First” and “China First” could drive up prices, while the US and other nations build independent supply chains to secure their own technological future, as per the report. This competition could slow global trade, but it may also fuel domestic manufacturing and innovation.
5. Cybercrime Will Get Much Worse
The report’s final warning focuses on cybersecurity. According to data from Cybersecurity Ventures cited by Bank of America, cybercrime could cost the world $10.5 trillion by 2025, reported GOBankingRates. With AI making deepfakes and phishing scams more convincing, both individuals and businesses will face greater digital threats, as per the GOBankingRates report.
This could spark a surge in cybersecurity investment from governments and corporations, particularly in banking, defense, and infrastructure, as per the report. The growing need for protection could even turn cybersecurity into one of the world’s most critical business sectors.
FAQs
How will AI and robots impact jobs?
AI and robots will boost efficiency but also change the types of jobs available. Workers who upskill will have better opportunities in tech and science fields.
Why could energy and material costs rise?
AI systems and data centers need huge amounts of power and materials. As demand grows, resources like energy and metals could become more expensive.