Global IT, telecom spending to hit $4 trillion, but economic concerns loom

IDC is projecting 2018 IT and telecom spending growth of 3.7 percent, but tariffs, interest rates and China loom.

Video: Top IT jobs and hiring trends for 2018

Global IT and telecom spending will grow 3.7 percent to $4 trillion in 2018, but economic concerns could derail growth in 2019, according to IDC.

In 2017, IT and telecom spending grew at a 4.2 percent clip.

IDC said economic issues like tariffs, rising interest rates and growth in China could cut IT spending to less than 3 percent. Indeed, Daimler issued a profit warning based on tariffs on its U.S. made cars.

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By 2022, annual IT spending should hit $4.5 trillion with software and services, cloud, and digital transformation seeing the most demand. Infrastructure spending has stabilized largely due to cloud spending.

IDC said there's a likelihood for a mild U.S. recession by 2020, but spending on cost saving software and cloud should provide a buffer for IT spending.

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