Capital Markets Summer 2022: Revealing Recession Patterns

I

Some Trends Are Larger Than Recession Revealing Recession Patterns

• Digital transformation is an enterprise imperative, in our view

I

‒ To keep up, companies must spend on areas like software which may make related end-markets recession resistant

II

Worldwide Digital Transformation Spending

Growth Through The Pandemic

GDP Software Recession

3.0

30%

16% Annual Growth

III

2.5

25%

20%

2.0

15%

1.5

10%

IV

5%

1.0

0%

Trillions ($)

0.5

-5%

V

Cumulative Growth

0.0

-10%

-15%

2017

2018

2019

2020

2021E

2022E

2023E

2024E

2025E

Source: IDC, November 2021, U.S. Bureau of Economic Analysis, NBER.

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