Brazil leads South America in IT spending numbers

August 1st, 2005

The Gazeta Mercantil reports that Brazil's IT industry contributed for 2 percent of the country's GDP last year, or 35.4 billion Reais (US$14.9 billion), out of Brazil's 1.77 trillion Reais ($745 billion) total Gross Domestic Product.

These numbers confirm that Brazil is leading the rest of South America in terms of IT spending reports the Gazeta Mercantil, a Brazilian financial newspaper.

The country's IT investment is above average for Latin America, but trails the U.S., Asia and Europe, the newspaper reported the research as saying.

On average, Brazil's IT investment is 1.4 percent of its GDP, versus 5.13 percent in the USA, 3.75 percent in Europe and 2.6 percent in Asia, the report said.

Brazil's IT sector generated 2 percent of the country's GDP in 2004, or 35.4 billion reais (US$14.9 billion) out of the nation's 1.77 trillion reais ($745 billion) total GDP, Gazeta Mercantil reported.

One in five companies are now using the internet for Voice over Internet Protocol service, as well as the transfer of data and images, the research said.

Cisco Systems specializes in Internet solutions and interviewed some 1,200 companies for the research.

Source: eCommerce Times