Here Are the Biggest Macro Threats to the Tech Industry in 2023
The macro conditions all around the world are not all that conducive to
industry growth, and the tech niche has proven especially susceptible to
that with all things having been considered and taken into account.
Analysts working at Counterpoint Research recently highlighted which macro risks will prove to be the biggest threats to the tech world.
The
ongoing economic recession topped the list, getting 71.41 points out of
a maximum 100. The pandemic may have sparked inflation, but the rise in
costs of living has not abated even as the pandemic has receded
somewhat.
Following that we saw the rivalry between the US and
China which may make trade negotiations harder than might have been the
case otherwise. This rivalry got a score of 63.41 due to the US placing
sanctions upon China, and coming in at number three is the energy crisis
which received 58.43 points.
Emerging markets might also be a
sore spot for the industry, with the turmoil going on in these markets
resulting in it receiving 58.27 points. It was followed by a retreat in
tech earnings which can already be seen with massive layoffs among all
major tech corporations.
One thing to mention here is that the
recession is a core component of most of the other macro risks that are
being faced by the tech industry. The energy crisis, emerging market
pains as well as many other things have been made worse than might have
been the case otherwise by the recession, and it’s shaping up to a long
hard year by all metrics.
China is going to be a big player that
will determine whether the recession ends sooner or later. The sudden
move away from Covid-Zero took many by surprise because of the fact that
this is the sort of thing that could potentially end up indicating a
lack of foresight among Chinese officials.
Also, China’s long
term economic outlook is not quite as rosy as it used to be. That will
definitely change the shape of the tech industry in ways that can be
hard to accurately predict.