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Bien Perez

China's sluggish economy has become a drag on global information-technology expenditure, which analysts expect to record slower growth than previously forecast this year.
In a report published yesterday, market research firm IDC estimated growth in IT spending worldwide would reach 4.6 per cent this year, compared with 4.9 per cent it predicted in May and 5.6 per cent last year.
Despite the lower forecast, expenditure is expected to reach US$2 trillion worldwide for the first time this year.
Total spending, including telecommunications services, is projected to rise 3.8 per cent to US$3.6 trillion.
IDC did not provide the year-earlier figures in the two categories.
Market analyst firm Gartner forecast in a separate report last month that total worldwide information and communications spending this year would increase to US$3.7 trillion from US$3.6 trillion last year.
Stephen Minton, the vice-president at IDC's global technology and industry research organisation, said: "Enterprise IT suppliers, US-based vendors in particular, are experiencing a challenging year.
"While mobile device sales continue to outpace expectations, the rest of the industry is experiencing weakening growth as the global economy faces up to a slowdown in China, which may yet spiral into a more severe downturn."
Amid weak demand in China, IDC has forecast global spending on personal computers to decline 7.2 per cent this year.
Growth in the country's gross domestic product, which represents a market's overall output of goods and services, slipped to 7.5 per cent in the second quarter from 7.7 per cent in the previous quarter.
Ren Xianfang, a senior economist at IHS Global Insight, pointed out last month that China's GDP had remained "under 8 per cent for five straight quarters, a clear sign of distress".
The economic uncertainty could dampen the country's chance to surpass Japan as the biggest spender on IT goods and services in the Asia-Pacific region.
IDC last year predicted IT expenditure in China would reach US$173 billion this year, enough to overtake Japan.


Weak China economy drags down global IT spending

Mobile devices seem to be only bright spot in the IT industry, with sales continuing to outpace expectations. Photo: EPA

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Apple used to release the latest iPad in spring, but now tends to update updating products in autumn to cash in on the holiday shopping season. Photo: AP

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China Business

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In a report published yesterday, market research firm IDC estimated growth in IT spending worldwide would reach 4.6 per cent this year, compared with 4.9 per cent it predicted in May and 5.6 per cent last year.
