IT services export fell to its lowest level since the beginning of the full-scale war.

IT export volume decreases: August 2024

In August of this year, the volume of IT exports decreased by 7% or $38 million compared to July and amounted to $507 million. This is the lowest figure since the beginning of the Russian aggression. Also, compared to August 2023, volumes decreased by 10.4% or $59 million.

For January-August of the current year, total export revenue from IT services amounted to $4.3 billion, which is 5.7% less than in the same period of 2022, or $242 million less in dollar equivalent.

The share of computer services in Ukraine's total service exports in August amounted to 37%. This is 3.7% less than in August 2023 and 1.7% less than in July of this year.

"The decline in IT services export volumes, unfortunately, continues. Even with an optimistic scenario for the end of 2024, we expect a reduction in volumes of at least 4% compared to 2023. Improving reservation mechanisms that would take into account various aspects, including the economic criterion, has the potential to significantly increase Ukrainian IT exports and increase tax and fee revenues to the state budget. Such a mechanism should meet various goals, including the support of the Armed Forces of Ukraine. It should also contribute to strengthening the labor market, ensuring business predictability, creating stable and transparent employment in the sector," notes Stepan Veselovsky, CEO of Lviv IT Cluster.

Total export of all services of Ukraine decreased by 3% in August, totaling $1.4 billion, $39 million less than in July.

Source: Lviv IT Cluster