scorecardresearchCan a recession hit the IT sector? What's the road ahead for the sector in times of slowing economies?

Can a recession hit the IT sector? What's the road ahead for the sector in times of slowing economies?

Updated: 16 Jun 2022, 09:42 AM IST
TL;DR.
Analysts fear rising inflation and aggressive rate hikes may trigger a recession and the IT stocks will see their demand scenarios shrinking.
The recent record-high inflation numbers will compel central banks globally to be aggressive in rate hikes and liquidity tapering which may lead to a slowdown in global economic growth and a recession in developed regions like America and Europe, the major customers of Indian IT companies.

The recent record-high inflation numbers will compel central banks globally to be aggressive in rate hikes and liquidity tapering which may lead to a slowdown in global economic growth and a recession in developed regions like America and Europe, the major customers of Indian IT companies.