Will the IT industry be able to withstand and rebound even higher when the global economy slowly but steadily enters a recession?
According to economists and business specialists, the world economy is headed for a recession. Numerous negative consequences of the economic crisis may be seen in a range of industries, as both large and small businesses are forced to cut costs in order to survive.
As a result of the circumstances, financial institutions are becoming more cautious and boosting interest rates quickly. In the midst of all the economic turbulence, the tech industry is in a perilous position; some predict that it will continue to suffer, while others believe that the industry will emerge even more successful after the recession.
Inflation in the EU and the UK peaked at 13% and 8.9%, respectively, and is expected to rise further until 2023. Interest rates in both areas’ central banks have risen by a number of percentage points.
The global bank explained the economic downturn in two ways. One of these factors is the infamous COVID-19 virus, which continues to damage China, while another is the conflict between Russia and Ukraine, which has resulted in an energy crisis for a large area of the world.
Analysts believe that while the recession will have a negative influence on some industries, it will have a positive impact on others. It is important to recognize that technology is now playing a big role in every industry.
It is plausible to predict that the recession will not have a detrimental influence on the technology industry because every business, regardless of industry, must become a technology business to some degree.
With the global economy swiftly nearing a recession, it is expected that corporate competitiveness would increase at previously unheard-of rates, compelling corporations to deploy cutting-edge technology resources and maintaining the tech industry.
