Exports of IT services from Ukraine fell by 16% to $1.68 billion in Q1 2023
At the same time, the share of IT in the export of services for Q1 2023 is 43%
Ukrainian exports of IT services in the first quarter of 2023 totalled $1.68 billion, down 16% compared to the same period in 2022.
This was reported by the press service of the IT Ukraine Association.
According to the Association's observations based on NBU data, a similar situation occurred in 2014, when the IT sector also showed a 26% drop and held positions of $350-400 million quarterly. At the same time, in 2016, the IT sector resumed growth and by 2022, its pace was already reaching 20% annually.
IT Ukraine noted two main reasons for this decline. The first is the industry's super-high growth in previous years. The second is that every first quarter of a new year traditionally has a drop compared to the first quarter of the previous year.
"The results of quarterly exports of IT services from Ukraine in 2022-2023 show that the industry has now entered a 'flat', meaning that growth has stopped and a significant decline has not begun," commented Kostiantyn Vasiuk, EBA Executive Director.
The association added that, according to the NBU, the share of IT in service exports in the first quarter of the year was 43%.
Background. As a reminder, in 2022, the IT industry generated $7.34 billion in foreign exchange earnings for the Ukrainian economy, according to the NBU. Exports increased by $400 million (+5.8%) compared to the pre-war year 2021.
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