Moody's chief economist Mark Zandi who thinks the US is on the verge of recession has 'good news' for techies

Moondy Analytics chief economist Mark Zandi has issued a cautious forecast as fears of US recession are mounting. Zandi has said that the economy is teetering on the edge of downturn. However, Zandi also mentioned that there’s a silver lining for the tech professionals. In a series of post shared on social media platform X (formerly known as Twitter) Zandi pointed out the troubling indicators from the economic data released last week which showed evidence of the deteriorating situation.

“The economy is on the precipice of recession. That’s the clear takeaway from last week’s economic data dump. Consumer spending has flatlined, construction and manufacturing are contracting, and employment is set to fall. And with inflation on the rise, it is tough for the Fed to come to the rescue,” wrote Zandi in a post in X.

Why tech industry is resilient
Speaking to Business Insider, Zandi pointed to multiple factors that could insulate the tech sector from the worst effects of a slowdown.

- Persistent demand for AI and automation tools across industries
- Strong investment in cloud infrastructure and cybersecurity
- Global hiring flexibility, allowing companies to tap talent beyond U.S. borders
- Government and enterprise spending on digital transformation, even during downturns.

Zandi feels that the tech sector will remain as one the few industries in which productivity will increase. “The tech sector remains one of the few areas where productivity gains are driving real value,” Zandi noted.

Immigration and innovation
Along with this, Zandi also warned about the restrictive immigration policies which could hurt the tech sector. He urged the lawmakers to protect access to global talent especially in AI, software engineering, and data science. "If it feels like we're coming to the end of the tariff increases, or like we're going to get a more rational immigration policy,' I think that would be a signal that the coast may be cleared," Zandi told BI.

“It’s no mystery why the economy is struggling; blame increasing U.S. tariffs and highly restrictive immigration policy. The tariffs are cutting increasingly deeply into the profits of American companies and the purchasing power of American households. Fewer immigrant workers means a smaller economy,” added Zandi.