ICT Investment Growing, But Not Back to Pre-2008 Growth Rates
Ottawa, November 5, 2013 — Investment spending in information and communications technology (ICT) in Canada continues to grow, but still has not returned to pre-2008 growth rates. That is the conclusion of ‘Overview of Developments in ICT Investment in Canada, 2012,’ a survey conducted by the Centre for the Study of Living Standards (CSLS) for the Information Technology Association of Canada (ITAC).
In nominal (current dollar) terms, total investment in ICT in Canada in 2012 rose 3.3 percent to $43.4 billion, the same rate of growth as in 2011, but below the 2010 rate of 4.2 percent. Total ICT investment in real terms (expressed in 2007 dollars) grew 5 percent, placing it below the rates of growth for 2011 (9.5 percent) or 2010 (11.2 percent).
Nominal total ICT investment has grown at a compound annual average rate of 1.1 percent during the 2008-12 period, compared to 2.8 percent during 2000-08. Real ICT investment growth has averaged 3.7 percent during 2008-12, compared to 8.8 percent during 2000-08.
Overall, the report says, the slowdown in real total ICT investment growth in 2012 was caused by declining investment growth for all ICT components. Real computer ICT growth dropped to 11.3 percent in 2012, compared to 19.8 percent (2011) and 20.1 percent (2010) for the previous two years. Real communications equipment ICT investment grew by 3.5 percent in 2012, down from 9.5 percent in 2011 and 15.7 percent in 2010. Real software ICT investment also experienced a slowdown, falling from 3.7 percent in 2011 and 4.5 percent in 2010 to 2 percent in 2012.
Conducted by the Ottawa-based non-profit CSLS for ITAC on an annual basis, the study aims to provide an overview of recent developments in ICT investment in Canada. It focuses on quantifying the contribution of three components of ICT investment—computers, communication equipment, and software—to nominal and real ICT investment growth in the total Canadian economy.
The complete survey results can be found here.
The Centre for the Study of Living Standards is a national, independent, Ottawa-based not-for-profit research organization. Its primary objective is to contribute to a better understanding of trends and determinants of productivity, living standards and economic wellbeing in Canada through research.
The Information Technology Association of Canada (ITAC) is the voice of the Canadian information and communications technologies (ICT) industry. ITAC represents a diverse ICT community spanning telecommunications and internet services, ICT consulting services, hardware, microelectronics, software and electronic content. ITAC’s community of companies accounts for more than 70 per cent of the 572,700 jobs, $155.3 billion in revenue, $6.2 billion in R&D investment, $30.4 billion in exports and $11billion in capital expenditures that the ICT industry contributes annually to the Canadian economy. The ICT sector currently represents 4.9 per cent of Canada’s gross domestic product (GDP) and accounted for 9.4 per cent of all real GDP growth since 2002. ITAC is a prominent advocate for the expansion of Canada’s innovative capacity and for stronger productivity across all sectors through the strategic use of technology.
For more information:
Senior Vice President, ITAC
(613) 238-4822 ext. 2223
Executive Director, CSLS