Brazil has seen a return to growth in IT investments in 2018 with numbers surpassing global average spend, according to data released by the Brazilian Association of Software Companies (ABES) and IDC.
IT spending for 2018 in Brazil went up 9.8 percent, reaching $47 billion, according to the research. This compares to the initial predictions of 4.1 percent growth for that market and average global spending of 6.7 percent.
Out of the total amount of business generated by the Brazilian IT industry last year, $23.9 billion (51.3 percent) refers to investments in hardware, while $12.2 billion (26.2 percent) is related to services, with software accounting for $10.5 billion (22.5 percent).
The numbers position Brazil as the world's 9th largest market in terms of IT investment, according to the ABES numbers.
"Our data shows that a modest recovery of the economy seen in 2018, coupled with the expectation of a more solid recovery brought a return to technology investments, which surpassed expectations," said vice-president of the board at ABES, Jorge Sukarie.
"This also shows the importance of the sector to companies as they seek more productivity, efficiency and competitiveness," he added.
According to the numbers, which are a preview of a full ABES study to be published in the second half of 2019, Brazil tops the IT investment ranking in Latin America, accounting for 42.8 percent of all investments in the region, followed by Mexico with 20 percent and Argentina, with 7.5 percent.
The top three countries in the IT investment ranking for 2018 compiled as part of the study are the United States at $822 billion, followed by China and Japan at $250 billion and $140 billion, respectively.