I’d be honest right away. The markets seem to be painting quite a bleak picture for 2025. Many economic indicators seems to be pointing towards a coming big recession.
Among the indicators are in the cryptocurrency market. Price movements have been generally disappointing as Bitcoin has been mostly bearish since the last halving in April. There were some enthusiasm after the US election, but prices are beginning to slide again after a while. This seems to indicate that investor are selling-off their cryptocurrencies to take long awaited profits. This isn’t a good sign as we are about to enter into a new year 2025 that is filled with a rather dreary outlook.
Gold price has reached a historic high, which seems to indicate that governments and big investors are stocking up this precious metal. Could they be anticipating difficult times ahead or are governments preparing for wars?
The value of US dollar is weakening. Interestingly, this is one of the key factors behind Ringgit Malaysia (RM) currency significantly strengthening against the US Dollar. This is an abnormal feat for an Asian currency that has not been performing well against major currencies.
Looking at the East, China’s great economy seems to be declining as well. Consumer spending remain sluggish post Covid, and 2024 monthly growth in manufacturing added value is contracting.
“Most People Have No Idea What Is Coming” — Robert Kiyosaki’s Last WARNING
I’d like to be the optimist but sometimes, being an optimist means you need to be realistic too. That means preparing for a major recession to really come around in 2025.
On a brighter note though, similar to what we had witnessed during the recent Covid 19 pandemic, our economies should not come to a complete shut down (hopefully). So, I would like to inject some positive sentiment amidst the rather dark outlook.
In this article, I would like to make some predictions about tech sectors which I think could still be viable during an economic recession. Note that Robert Kiyosaki took advantage of the 2008 financial crisis to amass even more wealth. So hopefully things will not be all doom and gloom this time round too.
Another example of an entrepreneur who prospered during a recession is Satoshi Nakamoto, the creator of Bitcoin. Did you know that Bitcoin whitepaper was released in October 2008 at the height of the 2007-2008 financial crisis? This means Satoshi was definitely not just sitting around moaning when the crisis hit. Instead, he laid down the groundwork for Bitcoin, launched it in 2009 and never stop putting hope in his invention.
To be clear, I am not saying that everyone of us can be great entrepreneurs like Kiyosaki or Nakamoto. Obviously, we cannot all be gifted to be millionaires or billionaires. My point is simply not to sit around and moan yourself to death if the global economy really go south in 2025.
Advantage of Technology During Recession
Even in times of economic recession, certain ventures can still remain viable. While the big tech companies have already begun layoffs, technology itself will not disappear. This means we can certainly utilize digital tools as a leverage to address emerging needs and trends.
Let’s take the recent Covid-19 pandemic as an example. Industries such as e-commerce, healthcare and delivery services mostly prosper when the economy went down the slump. This was possible because we kept the economy going with lots of online activities. Interestingly, it looks like our obsession with social media and online shopping over the last two decades had played a vital role in keeping us going during the pandemic.
The pandemic proved that technologies like e-commerce and social media are not inherently evil. It is the people who decide what they do with the technology that matters. We can use technology to serve people or make use of it to steal, spread dissensions and create chaos.
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We are now rapidly advancing into a more advanced digital area powered by artificial intelligence and perhaps even quantum computing in the near future. As a result, many industries will be disrupted by technological innovations and it is inevitable that some jobs will be made redundant.
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Recession 2025: Tech Sectors That Are Predicted To Thrive
Thriving Tech Sectors During Economic Recession:
. E-Commerce and Social Media
Image by AS Photograpy from Pixabay
One of first things that consumers will do during an economic recession is to seek out cheaper alternatives. Within the e-commerce industry, this means you can expect online traffic to significantly increase.
This is because more consumers will be active online hunting for the best prices. Online marketplaces will be frequently visited websites because it can offer lower prices than the brick and mortar shops. Petrol prices normally also increase during a recession. This may motivate more consumers to have their goods delivered rather than drive to the stores.
Consumerism will not completely die down just because there is a reduction of economic activities. People will still need essential goods and services to maintain a somewhat normal standard of living. People need more than groceries to live. We still need haircare, healthcare, optometrist and automotive services, clothing, computers, entertainment, etc. Therefore, any online marketplaces that offer essential goods and services are expected to go through a period of intense price competition during a recession.
Outside of the marketplaces, you can also expect social media traffic to increase. In the digital era, online word-of-mouth travels faster than its verbal counterpart. During a recession, product reviews and recommendations are very important as consumers will desire the best value for money. We should also expect unscrupulous sellers to be out to make a quick buck, but with social media, consumers will weed out sellers who are out to scam. Scammers will be hated much more when many people are facing hardship.
Taking Advantage of Artificial Intelligence and Email Marketing During A Recession
For starters, you can utilize AI-driven personalization to optimize customer experience. Having to hunt around for the best prices can be stressful for the consumer. This means your business can benefit if you make life easier for your customers. Treating your customers like individual human beings will be an especially important rule when they are feeling dejected from economic hardships.
You should also consider that many people may not have a regular income when unemployment increases. Your customers thus may feel more satisfied with a subscription model that offers significant savings through an upfront payment. This could be more appealing than recurring monthly payments. Incoming cashflow is obviously a positive boost for your business during uncertain times.
During an economic recession, consumers may no longer be loyal to their regular brands as they seek out new brands that can offer better value. Although controversial, an economic recession could be an opportunity to test out a new product. You may begin by investing in building up your prospects list via getting more email addresses from your sales channels. Then take a deeper look into your email marketing strategies to capture the attention of your customers. Email marketing will be a key tech during a recession because consumers will be thronging the Web to look for best-for-value deals.
You might be tempted to reduce your online advertising budget when competition is high but this may not be a wise strategic decision. Bear in mind that people will spend more time online when they are unemployed, so reducing your ads may result in less leads. You should probably also not skim on employing a skilled social media manager since your social presence will play a vital role when consumers are spending more time online.
. Remote Work and Collaboration Tools
Image by Innova Labs from Pixabay
I hope you hold some savings in Dollars, Euros, Pounds, etc. Because if you do, you could very well find new exciting jobs, career or even personal life opportunities in a South East Asia country.
Many digital nomads from Western countries have come to realize that they can enjoy a fairly comfortable and safe life in progressive countries such as Malaysia, Vietnam or Thailand. These countries offer a much lower cost of living if your income is paid in a currency that is stronger the local currency. Furthermore, a breath of fresh air in a new country would boost your creativity to start working on new ideas.
Remote work became a global norm post-pandemic and this trend is continuing to grow (despite criticism from some bosses). As the recession looms, essential jobs will be outsourced to Asian countries where wages are lower and regulations tend to be more relaxed. This is an opportunity that you can take advantage of if you are already living in an Asian country where its people are known to be recruited for remote work.
Companies Need Better Tools for Productivity, Communication and Collaboration
You are probably using Slack or have at least heard of it. Slack was founded in 2013 and was acquired by SalesForce in December 2020 for a whooping $27.7 billion! In fact, the acquisition of Slack was one of the largest in the history of software companies. That’s more than what Microsoft paid for LinkedIn in 2016. It’s also more than what Facebook paid for Whatsapp and Instagram, combined. (source: slidebean.com)
You should be curious why Meta keeps on producing more virtual reality (VR) and augmented reality (AR) devices despite lackluster response of the metaverse. You can bet that Meta would not undertake mega investments in VR/AR if they do not foresee huge potential in this technology.
These are just some reasons why the Virtual Work sector will likely continue to remain strong even in the face of a recession. As remote teams become more of the norm, cloud based productivity tools will continue to evolve and improve. What we are seeing now with Zoom and Slack is just the beginning of a new trend of virtual work.
This means AR/VR based meeting spaces that facilitate more immersive collaborations is on the horizon. Employees are already reporting of Zoom fatigue, so there is a desperate need to add more human touch to virtual communications. So don’t place your bet on VR/AR as just technologies meant for the gaming market. Immersive technology could be the next big thing that is just around the corner!
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. EdTech and Online Learning Boom During A Recession
Photo by Julia M Cameron
Many individuals will turn to education and skill development with rising unemployment. Online learning will remain popular as it offers cost-effective alternatives compared to traditional education in a college.
The Education Technology sector has witnessed rapid growth following the COVID-19 pandemic. Online learning in the digital era is more than just pushing out content. Any online teaching methods must be interesting, interactive and able to produce skills that can be applied to real-world jobs.
EdTech used to be mainly confined to the tertiary education sector, but now businesses too are jumping into the wagon and have been investing in online training solutions. This expansion to employees training proves that companies are also recognizing EdTech’s potential in improving employees’ performance and retention.
A 2022 survey by PWC found that almost one third of companies are integrating virtual reality to upskill their employees’ soft skills. Interestingly, it was found that virtual reality learners are able to complete their training three times faster than classroom learners. Could this be one of the reasons why Meta is so optimistic about VR metaverse?
Meeting Learning Expectations In The Digital Era
The age of social media has deeply affected the people’s attention span. Most people now are so conditioned to scan and flip through online contents quickly. This means long rows of text or uninteresting content will be ignored immediately.
This is the reason why many online courses use a lot of digital videos as a primary teaching medium. Podcast is also increasingly being used as it allows the learner to absorb knowledge while on the move. You would find that high quality online courses that meet learners’ expectations usually contain a variety of multimedia elements taught by highly knowledgeable tutors.
Skill based micro-credentialling is becoming quite popular, especially with technology based subjects. A tech professional just cannot afford to not invest in lifelong learning since technology evolve so rapidly. A recession would in fact allow tech professionals to have a career break, which they can use the opportunity to upskill themselves via online learning programs.
Recession 2025: Tech Sectors That Are Predicted To Thrive
. Freelancer and Gig Economy Support
Photo by RDNE Stock project
Recessions often lead to massive job cuts but not everyone hold enough savings to continue to cover their daily expenses. This results a rise in freelancing and gig work as people seek alternative incomes.
There is no doubt that the gig economy has gone through a significant growth in the past decade. This trend is set to be on an upward trajectory looking at how the job market is plagued by much uncertainties.
There was a time when job security was found within a corporation but this is no longer the case. We now hear of increasingly more corporate layoffs even when the economy is stable. Just imagine then how much more worse it will be when the recession really hits.
Traditionally, freelancing was merely regarded as a way to temporarily sustain ourselves when we lose our full-time job. This perception has changed dramatically in recent years, particularly with the Gen X, Y and Z. For some of these new age workers, freelancing has even become a full-time career. Whether for good or evil, this rising trend is boosting the gig economy.
Breaking Into The Gig Economy
Established freelancing platforms such as Fiverr, Freelancer and Upwork have been around for years, and some freelancers had even carved out a full-time career with them. New freelancers may certainly give a shot with making some income from these platforms but to be honest, the market on these platforms are already saturated.
If you are struggling as a new freelancer on any online platforms, then perhaps you might find it more worthwhile to spend your precious time and resources offline. For example, you can try engaging with businesses through in-person networking events, or even going door-to-door to promote your freelance services. “Who you know” will be key to landing jobs, so you should also learn up how to utilize business networking platforms like LinkedIn to reach out to more clientele prospects.
Food delivery, courier and taxi platforms are also popular options to earn an alternative income. Likewise, new entrants may also be quickly discouraged by the miniscule profits they can gain from online platforms. This is because the market has somewhat reached a plateau and some riders and drivers are already complaining that the system is no longer profitable amidst rising gas cost, tight competition and hefty commissions.
Therefore, there could be a better opportunity instead with providing support services for freelancers. This can be a combination of online tools and in-person consultative services that help gig workers manage their finances, enhance their skills or providing mental health support. You see, many freelancers could be supporting a family with young kids, so they will need trustworthy people to help them with daily tasks. This could be homecare services such as childcare, home tutoring, sending a meal to kids at home, lawncare, minor fixture repairs, etc. Here then lies an opportunity for a tech venture to address this market need.
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. Cybersecurity Services
Photo by Ercan Şenkaya
With the rise in remote work, companies will need robust security systems to protect their data. Cybersecurity solutions was mainly a concern for corporations but nowadays, even small businesses it too.
As businesses increasingly transition to digital operations, the need for effective cybersecurity solutions becomes more critical. Especially during times of economic uncertainties, more job positions could be made redundant in order to reduce overhead costs. As a result, digitization of business operations would be accelerated.
Cyber threats do not diminish during a recession even if there is a reduction in consumer spending. Data security is still mandatory to ensure compliance with data protection laws and regulations. As customer retention is even more essential during a recession, it thus crucial that businesses play a more active role in protecting their customers’ data to maintain the reputation of their brand.
Offering Cybersecurity As a Business Service
Small and medium-sized enterprises (SMEs) may lack the expertise or resources to develop in-house cybersecurity teams. This creates a demand for affordable, scalable, and on-demand cybersecurity services.
Cashflow will be an integral issue during economic uncertainties. Therefore, offering a subscription based cybersecurity solution will be attractive. The solutions can be tailored to the size and needs of businesses as well as offer different tiers of pricing and payments terms. Your range of professional services can be continuous monitoring, incident response, vulnerability management, and security consulting.
Niche opportunities may also exist if you dig deeper into the markets. You can offer specialized professional services that can meet the unique needs of different market segments. For example, this can be product and services specifically targeted at remote workers. Businesses and freelancers that conduct a high volume of e-commerce transactions may also be very interested in professional data protection services.
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Conclusion
It is evident that traditional business models will not be effective during times of economic uncertainties. Opportunities may arise though for entrepreneurial ventures that are able to leverage technology to meet evolving needs and challenges.
The key to thriving in 2025 recession will be adaptability and innovation. Businesses that aim to survive will need to be able to offer cost-effective solutions that resonate with both businesses and consumers who are tightening their budgets.
Entrepreneurs and businesses who know how to utilize technology to address pressing societal needs will have a higher chance of succeeding even in an economic recession. For instance, businesses can switch to outsourced remote work solutions to reduce overhead costs. Subscription based or on-demand business models will help companies navigate the recession as it can provide essential services at reduced operational costs.
While 2025 may bring economic difficulties, it also presents numerous opportunities to harness the prowess of technology to solve real-world problems. This is an opportune time for entrepreneurs to shine if they can help businesses and freelancers to cut costs and create value in new ways.
