On Tuesday, we were ready to publish our mid-2011 global IT market forecast. It projected 7.4% growth in the US IT market in 2011, and 10.4% in 2012. Global growth in US dollars was forecast at 10.6% in 2011 and 7.6% in 2012, with the dollar rebounding in 2012 from its weakness in 2011; measured in local currencies to eliminate currency fluctuations, growth was projected to be 7.8% in 2011 and 9.1% in 2012. Our definition of the IT market included business and government purchases of computer and communications equipment, software, and IT consulting and outsourcing services -- it did not include their purchases of telecommunications services, which are declining in the US and growing slowly globally.
Our forecast did recognize three threats to economic growth, and thus three risks to our forecast: 1) a failure to reach a sensible resolution to raise the US debt ceiling and start on a path to lower budget deficits; 2) a failure of European governments to reach a sensible resolution to the Greek debt crisis that lowered the Greek debt burden and reduced the risk of a broader debt crisis that included Italy and Spain; and 3) overreaction by China and India to rising inflation that reduced their growth.