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.
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by Zia Muhammad via Digital Information World
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