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Irish economy could shrink over 3% if US AI stock market crashes

26 July 2026 · in 80 words

Irish economy could shrink over 3% if US AI stock market crashes

Ireland's Department of Finance modelled that a 20% fall in the US stock market would see the Irish economy's modified domestic demand drop by around 3.25% after a year. The research only considered the direct impact of a market slump, not wider effects like credit market contagion.

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