Under the haze of economic recession, many industries are withering like fallen leaves in the cold wind. However, there have always been some industries that have been like evergreens in the long history of growth, maintaining stable growth and profitability regardless of economic fluctuations. This article will use historical data to reveal those industries that can still make money in times of recession.
1. Healthcare industry
The healthcare industry has been a safe haven in a recession. Regardless of the economic environment, the need for health is always present and growing. During the 2008 financial crisis, U.S. health care spending bucked the trend and grew by 4.7 percent, while GDP fell by 0.1 percent. This data is a testament to the stability and recession resilience of the healthcare industry. In addition, the market demand in the healthcare industry will continue to expand as the population ages.
2. Food and beverage industry
Food is the food and beverage industry, another sector that has been resilient in the recession. During the Great Depression of 1929 to 1933, the output value of U.S. food and beverage manufacturing fell by only 1.2 percent, much lower than the average 54.7 percent decline for other manufacturing industries. This shows that even in times of extreme economic hardship, people are still prioritizing basic food and beverage needs. As a result, the food and beverage industry has become a stable source of income during a recession.
3. Education industry
Education is an important way to enhance one's competitiveness and employment opportunities. During times of recession, many people choose to continue their studies or switch majors to improve their skills and knowledge. Data show that during the 2008 financial crisis, U.S. higher education enrollment increased by 6.4 percent, while unemployment increased by 3.6 percent. This shows that the education sector has not only maintained a stable development momentum in the economic recession, but also provided an important way for people to cope with economic challenges.
Fourth, the information technology industry
Information technology is an important force for social progress and economic growth. In times of recession, the information technology industry provides important support to other industries by providing efficient, convenient, and low-cost solutions. In addition, with the acceleration of digital transformation, the demand of the information technology industry is growing. As a result, the information technology industry has maintained strong growth momentum despite the economic downturn.
5. Entertainment and cultural industries
In times of recession, people tend to seek spiritual solace and recreation. As a result, the entertainment and culture industries have become an important way for people to escape from reality and relieve stress. During the Great Depression from 1929 to 1933, U.S. movie box office revenues increased by 22 percent, while other services declined by an average of 22.5 percent. This data speaks volumes about the unique charm and profitability of the entertainment and culture industry in the midst of a recession.
6. Retail and e-commerce industries
The retail and e-commerce industry is an important bridge between producers and consumers. In times of recession, the retail and e-commerce industry attracts consumers by offering more varied, affordable, and convenient goods and services. At the same time, the use of big data, artificial intelligence and other technologies to improve operational efficiency and reduce costs has enabled these industries to maintain stable growth in the economic downturn. For example, during the 2008 financial crisis, U.S. online retail sales grew by 4.6 percent, while total retail sales fell by 3.5 percent.
Historical data tells us that industries such as healthcare, food and beverage, education, information technology, entertainment and culture, and retail and e-commerce have been able to maintain stable or even growing momentum during recessions. The key to these industries being able to stand out in a recession is their ability to meet people's basic needs, provide psychological comfort, or help people adapt to economic changes in times of uncertainty. For investors and entrepreneurs, understanding the characteristics of these industries and market needs will help them find new opportunities and development space in economic fluctuations.