Digitalization projects as a motor against the recession

Recession proof tag - indicates resistance to recession

Source: marekuliasz/

There is massive investment in technology right now, especially in these 4 industries

Germany, as the economic engine of the EU and the euro area, has been experiencing negative economic growth since the summer and is therefore heading towards a recession, or is already in one. Many other regions in Europe will follow this development and will not be able to escape the dynamic.

As a consequence for the IT sector, one should generally expect declining investments and IT projects that will be postponed or canceled entirely. A reason for us to travel back in time and thereby draw conclusions about the future. However, historically there are sectors that have the need for investments, especially technology investments, even in economically difficult phases, and it can therefore be assumed that they will (have to) invest in digitalization even during a recession.


1. Healthcare: Innovative despite budget pressure

Health – a long life with the highest possible quality of life has always been and remains the wish of most people. There is therefore corresponding political pressure on the healthcare system, which is facing enormous challenges: from an aging population, to the increase in chronic diseases, to early diagnosis and increasing patient expectations.

In this environment, IT plays a key role. It can help improve patient care, speed up diagnostic processes and make the administration of hospitals and practices more efficient. The latest developments in telemedicine and AI-supported diagnostic tools, for example, could revolutionize the industry and are therefore being pushed forward despite tight budgets. Digitalization and the development of digital skills will therefore play a central role in the coming years, especially in the EU.

It is therefore very likely that, despite budget constraints, resources will continue to be available in the healthcare sector to promote the efficient use of digitalization in order to relieve the burden on other areas.


2. Energy and Utilities: Smart Energy Grids and Sustainable Solutions

Global climate change and the urgent need to make greater use of renewable energy sources are driving utilities to invest in innovative technologies. These companies are faced with the complex task of making energy networks smarter, maximizing energy efficiency and still reducing costs.

This requires significant investments in IT systems, from big data analytics to IoT to AI-driven forecasting models. For energy and utility companies this means: in order to find their own way out of the crisis, supported by the political will within the EU, and thus access to funding, digitalization projects within the framework of the development and supply of sustainable energy will receive particular priority in implementation.


3. Public administration: Efficient processes and citizen-friendliness

Especially in times of economic stagnation or recession, governments often take supportive measures, especially to promote infrastructure projects, in order to stimulate demand in the country. What used to be large construction and road construction projects is now increasingly an investment in digitalized infrastructure. Today's citizens expect digital services that are as efficient and convenient as online banking or e-shopping. E-government platforms, digital citizen services or interactive platforms for citizen participation are therefore on the rise. In addition, digitalization can make administrative processes more efficient and transparent.


4. Agriculture and consumer goods: The basis of our society

Despite the recession, people have to eat, drink and consume. Food retail and agriculture remain indispensable and will continue to grow in the next decade. Nevertheless, stagnation is not an option for them: climate change, population growth and scarcity of resources require technological solutions. Precision farming, automated warehousing systems or data-driven supply chain optimization are just a few examples. The use of technology in these industries aims to achieve higher returns, use resources more efficiently and serve customers even better.



Every recession brings uncertainty but also opportunities. It forces industries to act more efficiently, more innovatively and more customer-oriented. The use of IT and modern technology can make a crucial difference here. It turns out that the industries that invest in these areas not only get through difficult economic times better, but can also look to the future with greater strength. In certain industries, the need for digitalization projects is essential even in economically challenging times and must be carried out in order not to suffer a massive competitive disadvantage.