Growth in the EU this year is predicted to be a mere 0.2, around €303bn, compared to a decrease of 0.8% in the US, according to the forecast from the European Information technology Observatory (EITO).
"The global high-tech markets are recovering appreciably from the economic crisis. Signs are once again pointing toward growth, said professor August-Wilhelm Scheer, president of the German EITO partner association.
Brazil, Russia, India and China will experience the most growth but they account globally for only a small stake of the current market.
"Granted, the penetration of the economy and public administration with modern IT systems is not yet so far advanced as in the industrial countries, but the BRIC countries are quickly catching up," said Scheer.
In terms of the technology in demand the EITO expects the telecomsmarket to return to growth after a dip last year and data services,both fixed and mobile, are also rebounding strongly.
Hardware, software and services will rise 0.4% this year clawing back from a drop last year of 4.6%.
"Thecrucial thing is that in industrialised countries investments in new ITsystems by companies are accelerating again," said Scheer.
Cloudcomputing was highlighted as a growth area, 20% per year in the EU, andthe EITO expects it to become widely established by 2011.
In his daily news update,Richard Holway, chairman of TechMarketView, pointed out that the growthin the EU "is anaemic" and once global inflation was taken into accountthe overall growth rate of 1.9% was not that impressive.