KKR, a prominent U.S. investment firm, anticipates that the productivity gains from artificial intelligence are just beginning, yet these gains may lead to a concentration of economic growth in select industries. Henry H.
McVey, KKR's head of global macro and asset allocation, noted that while technology, high-end services, and government spending are experiencing significant growth, other sectors may struggle. The report identifies the defense and power sectors as likely beneficiaries of this trend, driven by heightened focus on supply chain security and resilience.
Additionally, McVey pointed out that Asia, particularly Japan and Korea, is expected to outperform in both public and private markets, with potential earnings surprises in 2026 and 2027. Despite concerns about China's property market, KKR predicts a strengthening of the Chinese yuan against the U.S. dollar, estimating a rate of about 6.5 yuan per dollar by 2027.
The report also emphasizes agriculture's growing importance as a strategic sector, with U.S. wheat production projected to hit its lowest levels since 1972, leading to rising prices. Overall, KKR's insights suggest a shifting investment landscape where certain sectors thrive while others face challenges