The World Bank began this year with unfavorable predictions in the economic, financial and investment spheres, affirming that this 2023:
“Global growth is projected to slow to the third weakest pace in nearly three decades, only offset by the global recessions of 2009 and 2020. Investment growth in emerging markets and developing economies is forecast to slow will remain below the average rate of the last two decades. Other adverse shocks could push the world economy into recession.”
Economists surveyed by The Wall Street Journal They estimated that the probability of a recession in the next 12 months is 63 percent, compared to an average probability of 49 percent in July.
For his part, combinator, one of the most prestigious startup accelerators in Silicon Valley, warned companies that they should prevent actions for the worst scenarios, given the collapse of the market and an imminent economic recession.
Given the collapse of technology shares such as Netflix, Shopify, Meta, among many others, venture capital (Venture Capital) will be scarcer and it will be increasingly difficult to obtain financing for entrepreneurs.
“No one can predict how bad the economy will get, but things are not looking good,” say some of the more experienced voices.
Large companies listed on the New York Stock Exchange such as Meta – parent company of Facebook, Instagram and WhatsApp -, Twitter, Uber or Netflix are taking actions to reduce their costs. The bottom Tiger Global has lost 17,000 million dollars by selling its shares in Uber, Netflix or Rivian at a lower price than the one it acquired at the time
Amazon posted the biggest annual loss in its history as a public company these days, and they expect the slowdown in cloud sales to continue.
For its part, Google’s advertising sales decreased, marking a downward trend in advertising contracting year after year.
The truth is that not even the big financial gurus know if the recession is just a small scare or if it will last two years.
There is a lot of uncertainty in the tech markets right now. Coinbase, one of the most popular cryptocurrency trading platforms, has been affected by global jitters: it announced that it will cut 1,100 employees, which is equivalent to 18 percent of its workforce. “It looks like we are entering a recession after an economic boom of more than 10 years,” Coinbase CEO Brian Armstrong said in a blog post.
Tesla CEO Elon Musk predicting a “mild recession” for 18 months to Restoration Hardware CEO Gary Friedman who said “anyone who thinks we’re not in a recession is crazy”.
People have called Microsoft: “recession proofBut even the tech giant is dealing with the crisis, laying off nearly 1,000 workers late last year in an unusually large set of layoffs for the company.
Microsoft shares have also fallen 29 percent, since January, along with many other tech companies.
“None of us is immune to macroeconomic headwinds,” chief executive Satya Nadella said in a interview with Yahoo Finance and He emphasized that we are in a period in which all companies need to “do more with less”, such as reducing operating expenses. We will see how the issue of recession affects the world of technology in many areas and how they are able to overcome these problems.