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Monday, December 22, 2008

Internet economy could shrink in 2009: OECD

As posted by: AFP

PARIS (AFP) - The Internet economy could shrink in 2009 because of the worldwide downturn, the OECD warned Monday in a report that forecast contraction of the semiconductor industry and cutbacks by corporate customers.

The Paris-based Organisation for Economic Co-operation and Development said that "with the outlook for the global economy worsening and business and consumer confidence plummeting, growth will remain flat or decline in 2009."

The report also forecast growth of four percent in the IT industry this year and said some sectors such as software, outsourcing, Internet sales and infrastructure investments would "weather the storm better than others."

The report said the semiconductor industry -- seen as a leading indicator for the information technology sector -- would fall nearly six percent in 2009 after weak growth of 2.2 percent in 2008.