Israel in Focus: Ukrainian IT Exports Grow for the First Time in Three Years

After two years of decline, Ukrainian IT service exports in 2025 showed a turnaround. The volume of computer services reached $6.66 billion, which is 3.3% more than the 2024 figure. In absolute terms, the increase amounted to $210 million. For an industry that has experienced a full-scale war, relocation of specialists, and loss of some markets, this is not just statistics — it is an indicator of resilience.

According to data from the Lviv IT Cluster, cited by industry publications, the sector has effectively halted the decline recorded in 2023–2024 and has moved to cautious growth.

Export structure: IT retains strategic significance

41.6% of total service exports

Computer services today account for 41.6% of Ukraine’s total service exports. A year earlier, this figure was 37.4%. Thus, the share of IT in the country’s service economy continues to expand.

In the combined structure of goods and services exports, the IT sector ranks second with a share of 12.3%. The leader remains the agricultural sector — 41.5%, and metallurgy holds third place with 8.7%.

This means that the digital economy has long ceased to be an auxiliary industry. It is among the system-forming directions of Ukrainian exports.

December as a marker of recovery

The most indicative result was in December 2025. Exports grew by 26.2% compared to November and amounted to $685 million — an increase of $142 million in one month.

This is the best monthly figure not only for 2025 but also one of the top three Decembers in the last five years. Only December 2021 ($792 million) and December 2022 ($751 million) were higher.

Such dynamics indicate the return of orders and the stabilization of contractual relations with key markets.

Sales geography: The USA remains key, Israel among the leaders

USA — the main market

The main export destination remains the United States. In 2025, they accounted for $2.39 billion, or 35.94% of Ukraine’s total IT exports. Formally, the volume decreased by 0.17%, but this rather indicates stabilization after a sharp decline in previous years.

Malta took second place — $578 million (8.68%), and the United Kingdom third with $557 million (8.36%). Cyprus and Israel also made it into the top five.

Israel’s presence among the largest markets confirms the deepening of technological cooperation. For Israeli businesses, Ukrainian IT teams remain a source of qualified developers, and for Ukrainian companies, the Israeli market is an entry point into projects in cybersecurity, fintech, and defense technologies.

Where growth is fastest

The most significant growth was recorded in supplies to Latvia (+62.1%), Finland (+51.6%), and Hungary (+38.5%).

At the same time, a decline was observed in Austria (−33.6%), Georgia (−29.9%), and Australia (−21.4%).

Such diverse dynamics reflect the redistribution of contracts and adaptation to new economic conditions.

Business expectations: cautious optimism

According to the IT Research Ukraine 2025 study, 32% of IT specialists positively assess the industry’s prospects — 7% more than a year ago.

Among technology company leaders, 33% predict growth in the next 12 months compared to 15.6% in 2024.

42% of CEOs expect an increase in turnover, another 42% do not predict changes, and 16% are preparing for a reduction. This indicates a gradual restoration of market confidence, although uncertainty remains.

What this means for Israel and the region

The growth of Ukrainian IT exports is important not only for Kyiv. Israel, being among the top five key markets, is effectively participating in the formation of a new architecture of technological cooperation in Eastern Europe.

For Israeli companies, this means access to flexible teams and competitive developments. For Ukraine, it means diversification of export flows and strengthening ties with high-tech economies.

In this context, НАновости — News of Israel | Nikk.Agency notes that technological cooperation is becoming an element of strategic partnership between countries, going beyond outsourcing.

A 3.3% growth may seem modest in absolute terms, but after two years of decline, it signals a trend reversal.

The December jump to $685 million shows that the industry retains the ability to quickly respond to changes in the external environment.

The Ukrainian IT sector, despite the war and economic pressure, remains the second most significant export direction of the country. And Israel’s presence among the key markets confirms that digital cooperation is becoming a long-term factor in bilateral relations.