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Information technology has already become a systemic foundation of Ukraine’s economy. This is evidenced by “The Code Economy” — the first comprehensive study built on economic modelling and the theory of creative destruction developed by Nobel Prize–winning economists. The research provides a structured assessment of the long-term impact of the IT sector on the transformation of Ukraine’s economy.
“The Code Economy” demonstrates that the IT industry generates a powerful multiplier effect, contributing significantly to exports, employment and productivity — from agriculture to public administration. The analysis confirms that the level of digitalisation directly determines a country’s resilience to crises, its recovery potential, global competitiveness and technological self-sufficiency.
Ukraine is confidently transitioning from a service-based IT business model to a product-driven economy — today, 39% of our technology market is already made up of product companies. This forms the foundation of our technological sovereignty. We are building an ecosystem where Ukrainian innovations — from DefenceTech to AI — move from prototype to global markets in weeks rather than years. The state is becoming an equal partner for business, creating conditions for domestic R&D and production capacities. This is the path that will help Ukraine enter the world’s top 30 economies,
said Oleksandr Bornyakov, Acting Minister of Digital Transformation of Ukraine.
The IT industry has a substantial impact on the national economy: every hryvnia generated by the sector creates an additional ₴1.09 in the wider economy, while each IT professional supports 2.29 jobs in related industries. In 2025, Ukraine’s IT sector employed over 305,000 specialists across 2,243 companies, supporting more than 800,000 direct and indirect jobs. The total market volume reached $7.85 billion, including $1.25 billion in the domestic market.
In 2025, the IT sector accounted for 3.2% of GDP, generated $6.6 billion in exports — equivalent to 41.6% of total services exports — and remained a key contributor to the state budget, paying ₴50.5 billion in taxes. With Ukraine’s nominal GDP at $210 billion, the IT industry continues to act as a stabilising force, generating economic activity well beyond its own sector.
Ukraine’s IT exports remain stable and geographically concentrated, with approximately 80% of revenues coming from ten partner countries. Key markets include Europe (51% of total exports, or $3.39 billion) and the United States (36%, or $2.4 billion). The continued leadership of the US, alongside the presence of the United Kingdom, Malta, Cyprus, Israel, Switzerland, Germany, Estonia, Poland and the UAE in the top ten, underscores the strong competitiveness of Ukrainian engineers in the world’s most demanding technology markets.
Amid the full-scale war, the IT industry has reinforced its role as an economic stabiliser: High-IT sectors — defined by IT intensity above 1.66% — recorded growth of +19.9%, compared to just +4.7% in less digitalised industries. This dynamic highlights the direct relationship between technological adaptability and business resilience to extreme external shocks.
Sectoral impact: how IT is transforming key industries
Digitalisation is driving new levels of efficiency in core sectors that generate the country’s primary added value.
The study confirms that Ukraine’s IT industry creates significant economic value: every hryvnia invested in digital solutions generates additional value across all sectors. This demonstrates the tangible impact of technology on efficiency and economic resilience,
said Mariia Shevchuk, Executive Director of IT Ukraine Association.
In the agricultural sector, the adoption of digital solutions delivers a 10–30% increase in productivity and up to 40% savings in resources, particularly water and fertilisers.
In commerce and retail, e-commerce reached a market volume of $6.56 billion in 2025 (+7% year-on-year), while the share of cashless transactions by volume hit a record 95.5%. Digital solutions in retail enable a 15% acceleration in capital turnover and reduce operational losses by 20%.
Industry is undergoing transformation through Industry 4.0 approaches: automation and the use of digital twins reduce equipment downtime by 30–50% and increase output by 10–20%.
In the public sector, digitalisation has already become foundational infrastructure: the Diia ecosystem serves over 23 million users and provides more than 160 services, scaling public services without additional costs.
EdTech solutions reduce learning time by 40–60%, lower the cost per learner to $180 at scale, improve student outcomes by 25%, and automate routine tasks for educators.
MedTech in Ukraine has turned healthcare into a direct economic driver: over the past three years, the number of electronic health records has increased by 528%, covering 37 million users and more than 400,000 healthcare professionals. The digital infrastructure also ensures access to care for 6 million internally displaced persons. Telemedicine and AI-driven diagnostics reduce waiting times, while early detection generates savings of up to $10 for every $1 invested.
The level of digitalisation directly affects an economy’s ability to withstand crises. High-IT industries not only grow faster but also adapt more effectively to external shocks compared to less digitalised sectors.
The data shows that if two industries were identical before the full-scale invasion, but one invested 1 percentage point more in IT, it retained 0.48% more of its gross value added after the shock. While this may appear modest, the effect is cumulative: the 5 percentage point difference in IT intensity between High-IT and Low-IT sectors translates into a 2.4% gap in gross value added.
Digitalisation is now a fundamental condition for Ukraine’s recovery. The level of technological development will determine how quickly the economy can adapt, scale and compete in global markets.
The study was conducted by the analytical company DataDriven on behalf of IT Ukraine Association, in partnership with UKRSIBBANK BNP Paribas Group, Kyivstar.Tech and MODUS X, with the support of the Ministry of Digital Transformation of Ukraine.
Supporting this research is an investment by UKRSIBBANK in the development of Ukraine’s market and digital ecosystem. Today, innovation and technology form the foundation of economic resilience, competitiveness and digital independence,
said Andrii Kashperuk, Deputy Chairman of the Board, Director of Retail Business at UKRSIBBANK BNP Paribas Group.
The theoretical framework of the study is based on the model of “creative destruction” developed by Philippe Aghion and Peter Howitt, for which the authors (together with Joel Mokyr) were awarded the Nobel Prize in Economic Sciences in 2025. The model explains economic growth through the continuous replacement of less efficient technologies with more productive ones. In this context, Ukraine’s IT sector acts as a catalyst for a “technological cascade” transforming traditional industries into high-efficiency, resilient systems.
“The Code Economy” study is grounded in a clear definition of the IT sector, analysing companies and entrepreneurs engaged in software development, IT services and related technological fields. The findings are based on official data from the State Tax Service, State Statistics Service, Ukrainian Startup Fund, Diia.City and the National Bank of Ukraine. Where data access was limited, econometric modelling and international methodologies were applied, including approaches by the World Bank, OECD and McKinsey Global Institute.
The full study is available via the link.
