European tech market set to stagnate following Brexit

The European tech market will see no growth in 2016 following the UK’s decision to leave the EU, according to a mid-year Forrester forecast.

European tech spending experienced seven per cent growth in 2015, but will remain flat at €707 billion this year, and grow by a mere 0.8 per cent in 2017.

The UK will experience the sharpest slowdown in tech spending, growing by just 1.3 per cent in GBP in 2016, and not at all in 2017 – a 4.2 per cent and 5.3 per cent drop compared to a pre-Brexit forecast from Forrester.

The most dramatic slowdown will occur in financial services, followed by retails and manufacturing.

However, according to the forecast, the professional services sector will not be immediately affected by Brexit and, encouragingly, software and tech consulting services will experience the best growth in 2016, at 1.5 per cent and 1.4 per cent respectively.

Spending on business technology will continue to grow faster than traditional information technology, but at a slower rate.