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Canadian Tech Budget Outlooks In A COVID-19 Recession

A Best-Case Scenario Of A 6.7% Drop In Tech Spending In 2020 And An Alternate Scenario Of An 11.3% Decline With Weak 2021 Growth

July 7, 2020


Why Read This Report

Canada's economy had been slowing in late 2019, putting downward pressure on its tech market coming into 2020. The COVID-19 virus and Canada's containment efforts have pushed Canada into a recession, which will in turn cause Canadian tech purchases to drop. We see two possible macroeconomic scenarios playing out for Canada. Scenario A, a relatively short two-quarter recession lasting through Q3 2020 with a recovery in Q4, would cause Canadian tech purchases to fall by 6.7% in 2020, with a 3.4% recovery in 2021. Scenario B, with a recession that lasts into 2021, would lead to an 11.3% tech downturn in 2020, with 2.6% growth in 2021. CIOs and their business partners can use these scenarios to plan their tech budget responses to these adverse conditions.

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Table of Contents

  • COVID-19 Will Cause Canada's Tech Market To Fall By 7% To 11%
  • Canada's Tech Market Is More Likely To Experience Scenario A
  • Canada's Tech Budgets Will Decline In 2020 Under Either Scenario
  • Recommendations

  • Canadian CIOs Must Cut Tech Spending, But Not As Much As US CIOs
  • Supplemental Material
  • Related Research Documents

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