Global Electronics Production to Increase 5 Percent in 2010: JEITA

In 2009, production by the global electronics and IT industries is seen declining 15 percent from the previous year, to ¥190.3 trillion, owing to the global financial crisis that began in the fall of 2008. However, the many fiscal measures implemented by countries worldwide have helped bring the global economy in the direction of recovery, and for this reason global production is forecast to increase 5 percent in 2010, reaching ¥200.4 trillion, according to a report by the Japan Electronics and Information Technologies Industry Association (JEITA).

Although the immediate crisis seems to have passed, the global economy remains unstable, and demand in the industries is expected to center on low-priced products with specific functions, which will slow the process of recovery. These include products such as flat-panel televisions, personal computers (PCs) and mobile telephones with specific functions. This situation is making it difficult to realize increases in the value of production and creating a severe operating environment.

In 2010, economic stimulation measures implemented in 2009 by governments around the world are expected to steadily bear fruit, taking the situation from crisis to recovery. Expectations are that measures to spur demand in America and Europe will turn around these economies, while in emerging markets strong demand is foreseen in China and other countries. These factors are expected to fuel a slight recovery in the electronics and IT industries, though lingering uncertainty will keep the level of this recovery well below the peak of 2007. On the other hand, the expanding range of IT equipment applications worldwide should lead to a recovery in demand centered on display devices and semiconductors, sustaining an increase in global production by the industries.

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