Consumer IT spending will decline even more as the Asia-Pacific region fears a recession

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Consumer IT spending will decline even more as the Asia-Pacific region fears a recession
25 Jul 2022
6 min read

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News Synopsis

Depending on how severe the economic slowdown is, consumer IT spending in the Asia-Pacific region, which is already suffering from the current tight market conditions, is expected to continue to decline in 2023. The likelihood of a global recession has risen in tandem with rising inflation and expectations for tighter monetary policy.

Inflation is increasing as a result of persistent supply chain constraints, geopolitical unrest, rising food and energy costs, and Chinese lockdowns in early 2022. The report mentioned that the second-order effects of these disruptions on the economies of the Asia-Pacific region are now being felt. "One in two businesses in the region expect that IT cost price increase stemming from inflation will impact their spending plans for the rest of 2022, said Vinay Gupta, Research Director, IT Spending Guides, IDC Asia/Pacific.

"If the situation persists, businesses will either delay projects or adjust spends to focus on strategic initiatives essential for future business functions and needs," he added. However, the demand for IT investments from businesses and service providers in Asia-Pacific has remained steady so far.

The spending of businesses and service providers will also be impacted by any further deterioration in the financial situation.

Because so many devices have already been purchased in the last two years to enable work from home or online classes, consumer IT spending (related to the purchase of mobiles, tablets, PCs, wearables, and peripherals) has slowed in the first half of 2022.

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