Economic Outlook for Global Technology Markets
Stay up to date on how the latest economic trends are impacting global tech markets.
Monitor the Latest Tech Economic Opinions and Conditions
Global technology demand will be shaped by emerging economic conditions for years to come. IDC’s global analyst community monitors the short and long-term implications, providing accurate market data, timely insights, and context critical for action.
While businesses seek to cut costs and identify savings in response to the economic climate, technology budgets face increased scrutiny.
Although IT spending held up well through FY22Q4, the longer-term impacts of earlier interest rate changes and mass-scale layoffs have begun to manifest globally in FY23Q1 translating to minor slowdowns in spending on average. However, regional analysis reveals the APJ region, which saw the biggest spending slowdown in FY22, increased spending rates across FY23Q1 pointing to slight regional recovery.
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Annual Growth of Tech Spend
Tech spending is down from the highs of 2021, declining through 2022 and into the Q1 2023, with Asia Pacific and Japan representing the largest slowdown compared to the Americas and EMEA regions. Tech spending in Q1 has declined for both the Americas and EMEA regions but is seeing a recovery in Asia Pacific and Japan. The forecast for 2025 and 2026 shows stagnant growth is expected long term.
The latest IDC Future of Resiliency and Spending Survey reveals that recession concerns are easing up in Asia Pacific, with less than half IT leaders anticipating a recession in the coming year. Leaders in Western Europe are also less pessimistic than at the start of the year. Despite these improvements, overall expectations of an imminent recession began to increase with answering 65% said “yes” this month, up from 63% last month.
This increase in concern can be attributed exclusively to North America where 80% of respondents answered “yes” to expecting a recession to occur in the coming year, up from 75% a month before. This change reflects the impact of the Silicon Valley Bank failure on overall expectations as the survey was conducted in the weeks after the collapse.
Despite economic uncertainties, IT leaders are increasingly aware of the importance of generative AI and the use of AI in general in the coming years. While this isn’t yet translating into significant IT spending, its strongly influencing where they are allocating time and staff accessing opportunities and potential disruptions.
See the full report for more detail, including insights from over 900 key digital infrastructure influencers and decision-makers in their organizations.
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Anticipated Economic Impact
Globally, 65% of respondents believe there will be a recession in the coming year. While the majority of respondents across North America, Europe, and Asia Pacific believe the impact will be moderate, fears over a severe recession in North America are more than twice as prevalent than they are in Asia Pacific.
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