New Delhi, Sept. 28 -- A sharp correction in equity markets combined with a pullback in artificial intelligence (AI)-related investment could push the US economy into recession and drag global growth below 1 per cent in 2027, Fitch Ratings said in its September Global Economic Outlook.

Fitch modelled a downside scenario involving a 35 per cent decline in US equity prices, a 15 per cent fall in non-US equities and an additional confidence-driven shock to US private investment.

The rating agency said the results of the scenario pointed to a significant deterioration in economic activity, with the US economy entering recession and global growth coming close to stagnation in per capita terms.

"We looked at the impacts of a 35% decline in U...