Economic Risks of Artificial Intelligence Investments and a Potential U.S. Stock Market Decline
Fitch Ratings experts stated that a potential U.S. bear market could freeze artificial intelligence spending and negatively impact the global economy.
According to a new report published by Fitch Ratings analysts, a potential wave of decline in U.S. stock markets could slow down artificial intelligence spending and lead to profound economic consequences.
Bear Market Scenario and GDP Impact
Fitch Ratings analysts stated that a potential bear market could trigger a recession, putting pressure on global markets and bonds.
Share of Artificial Intelligence Spending in Growth
Technology investments have increased much faster than nominal incomes since mid-2023, reaching 5 percent of GDP in the second quarter of this year.
Global Markets and Inflation Expectations
It is projected that the weakening of the U.S. economy will also have international effects, with global GDP growth potentially falling below 1 percent in 2027.