Global IT spending recovers, on the up

International Data Corporation (IDC) has shown that IT spending has bounced out of the recession and is continuing to grow globally, though the European market is a weak spot.

The forecast says that worldwide IT spending will increase by just under four percent this year at the constant currency, to $1.47 trillion. Hardware will be the main focus on spending with an overall growth of 6.4 percent globally, though software and service spending will increase by 3.1 percent and 1.5 percent respectively. China and India have been particularly quick to get investing in new products to support export growth. China can expect to see a growth rate in spending of 13.7 percent, while it is predicted that India will see a 13.8 percent increase.

All is not well everywhere, though. In the EU, the crisis in Greece has sent eyebrows raising about short-term growth. The IT market in Western Europe is recovering, slowly, but IT spending will likely remain flat throughout the year. Japan hasn’t been doing well, either, with IT spending set to decline by 2.2 percent this year.

An economist at IDC, Anna Toncheva, reckons that the risky markets will stay risky. She said in a statement: “There will be a period of intense exchange rate volatility” as money immigrates from Europe to the US.