Ukrainian IT exports: September growth against a quarterly decline

September 2024 was marked by a slight increase in export revenues from Ukrainian IT services, which increased by 2.4% compared to August and reached $519 million. This brought an additional $12 million to the national economy, according to data from the National Bank of Ukraine. This was reported by Lviv IT Cluster.

Despite the positive developments in September, the total for the third quarter of 2024 was the lowest since the beginning of the year, generating $1.6 billion in revenue. This is 4.6% less than in the same period last year, and 2.8% ($46 million) lower than the previous quarter.

September's figures also turned out to be slightly weaker compared to the same month last year, when the volume of exports of IT services was 0.4% ($2 million) higher. Total revenue for the nine months of 2024 was $4.8 billion, down 4.9% ($244 million) from the same period in 2023.

The head of the Lviv IT Cluster, Stepan Veselovskyi, noted that although growth was recorded in September compared to August, the overall dynamics indicate the weakest September indicators during the entire period of the full-scale war. In his opinion, this could be an alarming signal for investors and foreign partners, especially against the background of recent initiatives to increase the tax burden on the IT sector and temporarily suspend bookings.

In general, the share of computer services in the structure of exports of all services reached 38.1% in September, which is 1.1% more than in August. However, this indicator still remained 2.5% lower than in September 2023, when it was 40.6%.

It is worth noting that the total export revenue from all services in Ukraine in September amounted to $1.36 billion, which is 1% ($9 million) less than in August. However, despite the September slump, according to the results of the first three quarters of 2024, the export of services increased by 5.7% ($680 million) compared to the same period of the previous year, demonstrating the resilience of the Ukrainian service sector even in difficult conditions.