Will the Internet economy shrink in 2009?

The Internet economy could shrink in 2009 because of the worldwide downturn, the OECD warned on Monday in a report that forecast contraction of the semiconductor industry and cutbacks by corporate customers.

The Paris-based Organisation for Economic Co-operation and Development said that "with the outlook for the global economy worsening and business and consumer confidence plummeting, growth will remain flat or decline in 2009."

The report also forecast growth of four per cent in the IT industry this year and said some sectors such as software, outsourcing, Internet sales and infrastructure investments would "weather the storm better than others."

The report said the semiconductor industry - seen as a leading indicator for the information technology sector - would fall nearly six per cent in 2009 after weak growth of 2.2 per cent in 2008.

Source: Agencies