The decline in IT spending in Europe has bottomed and the beginnings of a gradual recovery are now appearing, according the latest data on technology expenditure in western Europe, compiled by IDC and released this month.
IDC has increased its 2002 growth forecast for annual IT spending in western Europe from January’s 6.4% figure to 6.6% in the February update. This is already an improvement on the 5% growth of 2001 and growth is forecast to accelerate to 9.0% in 2003, in line with overall economic recovery.
“Data has emerged in recent weeks, providing early signs of overall improvement in the European business environment,” said Stephen Minton, director of IDCÂÂ’s European IT Markets Center. “After the downturn in spending which characterized the second half of 2001, there are now leading indicators of an imminent rise in demand.”
In these new forecasts, the fastest-growing market in western Europe in 2002 will be Sweden, which is expected to rebound with an 8.1% increase in IT spending this year. Strong growth is also expected in France, Italy, Finland, Spain and the UK. The weakest markets will be Germany, Austria, Belgium and Switzerland.
