News
The Japan Electronics and Information Technology Industries Association (JEITA) projects the world’s production value will decrease 3% from the previous year to $3.38 trillion in 2023. The Tokyo-based trade organization for the electronics and IT industries foresees the global economy will grow increasingly slowly due to steep rises in fuel and raw material prices; growing uncertainties, such as the ongoing disputes in Ukraine and Israel; slowdowns in consumer spending and capital investment; and other reasons. However, global production is anticipated to come back in 2024, swelling 9% to $3.69 trillion.
JEITA envisages the global economy will register negative growth this year owing to sluggishness in electronic devices, parts and components. Next year, it forecasts there will be corporate and industrial changes thanks to generative AI and other innovative technologies. As a result, it predicts that more digital investments will be made to stimulate economic growth. Demand for electronic parts and components is expected to recover, while solution service are forecast to expand. For these reasons, JEITA thinks the global economy will grow year on year in 2024.
As for the value of production by Japanese enterprises, JEITA anticipates a shrinkage of 1% to ¥39.7 trillion ($279 billion) in 2023, as electronic devices, parts and components have declined due to weak consumption overseas. In contrast, it is anticipated to come back in 2024, improving 5% to ¥41.6 trillion ($292 billion) because of increases in solution services as progresses in the sophistication and automation of data use that can deliver new value.
