U.S., Other Recessions Forecast To Cause Cuts In Technology Spending

Washington, D.C. (AHN) - Recessions in the United States and other countries will cause global spending on information technology and services to drop by 3 percent during 2009, a technology research firm says.

Forrester Research forecasts an estimated $1.66 billion drop in spending.

That is a sharp contrast to last year's growth in spending of about 8 percent that capped years of increases in tech spending. But it isn't as bad as the 6 percent drop in tech spending that occurred in 2002.

The projections are based on the recessions in the U.S. and elsewhere beginning to end during the second half of 2009. However, some economists are predicting that the recession in the U.S. will continue through 2009 and into 2010 before the economy begins to recover.