EFFECT OF THE GLOBAL ECONOMY SLOWDOWN ON THE TECHNOLOGICAL SECTOR OF THE WORLD

1. EFFECT OF THE GLOBAL ECONOMY SLOWDOWN ON THE TECHNOLOGICAL SECTOR OF THE WORLD ABSTRACT As per the latest reports and analysis made by the IMF (International Monetary Fund), the world is slowly moving towards the phase of economic slowdown, and certainly, 2023 would be a year of recession. This statement is released by IMF after analyzing the current situation that is prevailing in the world’s biggest economies- China and the United States. The new wave of Covid-19 that hit the world, especially China, has completely disturbed the economy of China due to which international trade has also declined in the year 2023.

2. The value of local currencies of different countries is falling as compared to the dollar due to which, the inflation pressure in developing nations is increasing. This is happening due to the ongoing war between Russia and Ukraine. IMPACT OF GLOBAL ECONOMIC SLOWDOWN ON IT MARKETS The economy of the United States is one of the biggest stakeholders when we talk about the IT sector of the world. The US has enjoyed unconventional growth and a spike in its profits and value chains due to the technological industry. Big tech giants like Netflix, Meta, Apple, Google, and Amazon have added great value to the economy of the United States. Just due to the recession and global economic slowdown, the profits derived from the IT sector would decline to a great extent in the year 2022-2023 by almost 33%. Due to the rising prices of raw materials and finished goods, the customer’s buying power would also be affected and would hence affect sales in a negative manner. Following this, the US Export Data and US Trade Data would also decline. As the sales will decline, the spending power of businessmen would also get affected due to which he/she will spend less on marketing which will affect the revenue of social media companies. Due to the economic slowdown, the jobs of various workers, as well as employees are getting affected as sales are reduced and the companies are not able to pay their employees in full. This will cause a rise in unemployment, a reduction in international trade, and a fall in US Trade Data to a great extent. It is obvious that if the country is not able to sell its old articles to its customers or trade them, it will reduce its imports too to avoid overstocking. That means the US Import Data would also be affected. CONCLUSION As the US is trying hard to slow or reduce its budget, the direct and negative impact will come in front of big companies like Infosys, Tech Mahindra, and Netflix. With the decline in overall trade to and from the country, the traders and marketers of the US will also face losses. The economic or global slowdown would surely impact the IT sector too as the main innovations come from there.

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