The world economy is steadily moving towards a recession, will the tech industry be able to suffer and emerge even higher?
Economists and industry experts predict that the world economy is moving towards a recession. Countless effects of the economic downturn can be seen in multiple industries, where businesses big and small are facing increasing challenges and forced to cut down costs.
Realizing the situation, financial institutions are also becoming increasingly cautious and are increasing interest rates at a fast pace. In the midst of all economic chaos, the tech industry is in a questionable position, many predict that it will go on to suffer a hard blow while others claim that the industry will emerge even more successful after the recession.
Inflation in the UK and EU have reached a peak of 13% of 8.9%, these numbers are only expected to stay up throughout 2023. Central banks in both the regions have boosted the interest rates up by several percentages.
The world bank while discussing the economic downturn stated two reasons. One of these reasons is the infamous COVID-19 virus that still continues to affect China whereas the other one is the Russia Ukraine conflict that has pushed a large part of the world towards an energy crisis.
When talking particularly about the tech industry, experts believe that the recession might severely affect some sectors of the tech industry while others will come out strong. Something that’s important to consider is the fact that technology is now playing an important role in every industry.
Any business, no matter its industry, has to become a technology business to some extent, thus it can be predicted that the recession will probably not have an adverse effect on the tech industry.
With the recession fast steading its way towards the world economy, it is believed that competition between businesses will increase at unprecedented rates, forcing them to utilize modern technological resources thus keeping the tech industry afloat.
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