US IT spending surge double-times GDP
IT spending in the United States is expected to rise by 5.6 per cent in 2011 – that's nearly twice the pace of the expected growth in US gross domestic product, which is projected to grow by a measly 3 per cent this year. This news, from the wizards at IDC, comes just as IT folks are finishing the first half of their spending …
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"measly"
3 % GDP growth per annum is pretty damn good if you can get it. Anything above inflation, adjusted for population, is good. Unlikely for the US at the moment, though, with negative real rates inspiring various assets bubbles including tech stocks.
As the article suggests the predictions sound like a lot of wishful thinking. If investment in one area really does outstrip GDP for any period of time it can only mean either investing less in other areas or simply importing all the equipment. Also, how do such predictions square up with the cloud utopians who promise cheaper hardware?
Good news for someone else
Quote: "If investment in one area really does outstrip GDP for any period of time it can only mean either investing less in other areas or simply importing all the equipment."
In this case it is the latter. So it is good news only for China and Taiwan.
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