Ukraine’s IT industry brought in $3.2 billion in the first five months of the war

This is the only industry that grew in 2022.

The IT sector of Ukraine in the first five months (January-May 2022) provided export revenues in the amount of $3.2 billion — 27% more than in the same period of 2021. In fact, IT is the only business sector that has grown in 2022.

Currently, IT accounts for almost half of the total volume of service exports. To be more precise, in 5 months of the current year, the share of IT in the entire export of services was 46%. For comparison, a year ago this figure was 37%.

From January to May 2022, all exports of services remained at the level of the corresponding period last year — $6.8 billion. At the same time, exports of goods decreased by 20% — from $22.5 billion to $17.9 billion. The decline was recorded in the main categories, such as black metals — 38%, food — 6%.

The war also affected the geography of goods exports. If in 2021 the shares of Europe and Asia in the total volume were almost the same — 38% and 40%, respectively, then in 2022 the share of Europe doubled and exports amounted to 78% ($2,080 million from $2,651 million).

Exports to Europe for the period January-May 2022 increased by 6% compared to the same period in 2021, exports to Asia decreased by 86%, to America – by 67%, to Africa – by 84%, and to the CIS countries – by 74%.

One of the main goals of the current government is to increase the share of IT in the country’s GDP from the current 4% to 10% by 2024, and Diia.City has a significant role in achieving this goal. This week, the Ministry of Digital and Digital Affairs announced a new Digital4Freedom initiative, which the department called “digital lendlease” and aimed at an immodest 40% share of IT in the overall structure of GDP. It became part of the 10-year recovery program of Ukraine (it is also called the “Marshall Plan for Ukraine”), which is estimated at $750 billion.