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AI Bubble Threatens UK Economy | Europe News
Description
The Bank of England warns a U.K. recession could loom if the AI stock bubble bursts, risking a 2.2% GDP plunge due to a “triple whammy” of overexposure, slow adoption, and uncertain winners. Even with less direct exposure than the U.S., the U.K. faces global spillover effects, self-reinforcing investment cycles, and ballooning AI infrastructure costs. Rising private credit funding, opaque risk exposure, and supply chain vulnerabilities in chips and power threaten to amplify any downturn.
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