UK tech sector to be hit harder than France or Germany in 2020
Technology spending is set to be hit harder in the UK than in France or Germany, new research revealed, as different approaches to the pandemic weigh on the sector.
Research from Forrester said the UK will be most heavily impacted, with an expected tech decline of up to 9.3 per cent in 2020, followed by a 1.1 per cent decline in 2021.
“The UK is more vulnerable because of the country’s delayed pandemic response, its problematic testing program, and its narrower income support packages,” analysts said.
Under the most likely scenario, researchers said the UK’s tech sector will see computer equipment sales drop nine per cent, communications equipment by 11 per cent, and software spending by 10 per cent this year.
Meanwhile France’s tech spending could decline 6.6 per cent, but is promised a much more positive bounce-back in 2021 to 6.3 per cent growth.
Germany will fare the best out of the three, declining 5.2 per cent this year and rebounding to 4.1 per cent in 2021 should its economic recovery begin in the third quarter.
Forrester said aggressive and early testing in France and Germany put it ahead of the UK, along with strong business balance sheets.
“Covid-19 is significantly impacting tech spending and budgets in the UK, France, and Germany, with the UK looking like it will be hit the hardest in 2020 and beyond,” said Andrew Bartels, vice president and principal analyst at Forrester.
“A key factor in how well a country’s economy and tech market will bounce back is dependent on how early and aggressively it acted to contain the spread, as well as its economic stabilisation program in place.”