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Despite Recession Warnings, Tech Sector Shows Resilience, Says Moody’s

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Recession Looms—But Tech Thrives

Moody’s chief economist Mark Zandi issued a cautious warning: the U.S. economy may be nearing a recession. Yet he offered reassurance for the tech sector, which he says continues to demonstrate adaptability and strength amid broader economic headwinds.

Why Tech Is Holding Steady

  • Continued innovation, especially in AI and cloud services, creates new demand
  • High-skilled immigration supplies a vital talent pipeline
  • Tech firms benefit from diversified revenue streams, helping weather downturns

Zandi’s outlook underscores the industry’s role in moderating macroeconomic risks—and its potential to lead recovery efforts.

Implications for Industry and Beyond

For startups, investors, and policymakers alike, the message is clear: supporting tech investment today may pay dividends tomorrow. Yet concerns remain around inequality, job displacement, and the pace of change—especially under recessionary pressure.

Looking Forward

As other sectors slow, tech’s resilience may bolster overall economic health. But sustainable success depends on balanced public policy—one that fosters innovation while protecting workers and communities.

Tech may not just survive the next downturn—it could help redefine the path forward.

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