Exports of IT services from Ukraine in August 2024 reached a minimum since the beginning of the full-scale invasion, amounting to $507 million. Despite the decline, the IT sector remains a key source of foreign exchange earnings for the country.
Export of IT services from Ukraine
August decline
In the last month of summer 2024, the volume of exports of IT services from Ukraine decreased to $507 million. This is $38 million less than in the previous month, which corresponds to a drop of 6.97%. This result was the lowest not only in the first eight months of 2024, but also since the start of Russia’s full-scale military aggression.
Comparison with previous periods
Until August 2024, the minimum export of IT services was recorded in January of the same year and amounted to $508 million. Despite the decline, the IT sector continues to play a significant role in the economy of Ukraine, providing about 37% of the country’s total exports in August 2024 year, which reached $1.37 billion.
Results of eight months
For the period from January to August 2024, the total volume of exports of IT services from Ukraine amounted to $4.26 billion. This figure was lower than for the same period in 2023, when exports reached $4. 5 billion
Key partners
The main importers of Ukrainian IT services remain the USA, Great Britain, Malta, Cyprus and Israel. In August 2024, exports to the US were $184 million, down from July ($198 million) and August 2023 ($218 million). The UK, by contrast, increased imports to $53 million compared to July ($50 million), but this is still less than in August 2023 ($59 million).
Dynamics of recent years
In 2022, the IT industry of Ukraine reached a record export of $7.34 billion, which is $400 million exceeded 2021 pre-war levels. However, in 2023, there was a decrease in export volume by 8.4%, to $6.7 billion.
Glossary
- IT services - information technologies, including software development, web design, cloud services and other digital products.
- USA - The United States of America, the largest importer of Ukrainian IT services.
- Great Britain is one of the leading European countries actively cooperating with the Ukrainian IT sector.
- AIN is a Ukrainian online publication specializing in technology and startup news.
- Export - removal of goods or services from the country for sale on the foreign market.
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Answers to questions
What are the dynamics of exports of IT services from Ukraine in August 2024?
What share does the export of IT services occupy in the total export of Ukraine?
How has the volume of exports of IT services changed in the first eight months of 2024 compared to the same period in 2023?
Which countries are Ukraine's main partners in the export of IT services?
How has the volume of exports of IT services from Ukraine changed in recent years?
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Discussion of the topic – Record drop in exports of IT services in Ukraine: analysis of the situation and prospects
In August 2024, exports of Ukrainian IT services reached a minimum since the beginning of the war, amounting to $507 million. This is 6.97% less than in July and is the lowest figure for the first eight months of 2024.
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Beatrice
Interestingly, the export of IT services from Ukraine has decreased. Maybe this is due to the general economic situation in the world? 🤔
Hans
Yes, Beatrice, perhaps. But I am surprised that even in such a situation, the IT sector provides 37% of the country’s total exports. This is impressive! 💻🚀
Sophie
I agree with Hans. Ukrainian IT specialists are known for their high level. I wonder how they adapt to the current situation? 🧠💪
Carlos
Sophie, I heard that many companies have switched to remote work and even relocated. This could affect the statistics. By the way, the USA remains the largest partner - this is an indicator of trust in Ukrainian developers. 🇺🇸🤝🇺🇦
Giovanni
Pfft, all these numbers and trends... It used to be better when people simply worked, and did not chase exports and innovations. Just noise and bustle.
Beatrice
Giovanni, but innovation is what moves the world forward! See how the IT sector helps the Ukrainian economy in difficult times. This is great! 🌍💡
Anna
Interestingly, Malta and Cyprus are in the top 5 partners. Maybe this is due to the tax policies of these countries? 🏝️💼
Hans
Anna, good point! Perhaps many IT companies use these countries as hubs for international business. In general, despite the decline, $4.26 billion over 8 months is an impressive amount for a country at war. Ukrainian IT specialists are real heroes! 💪🇺🇦