KYIV RYSING is a comprehensive study focusing on the business ecosystem of Ukraine, developed by Kyiv Consulting for the purpose of improving the visibility of our country within the global information space.
The name “KYIV RYSING” and particularly the letter “Y”, implies emphasising the real potential of Ukraine and, especially, Kyiv in the context of PAST and PRESENT events, as well as FUTURE plans and opportunities by addressing the conceptual topics: historical prerequisites for the full-scale Russian invasion of Ukraine; the current impact of the war on military, social, economic, and environmental spheres, both in Ukraine and globally; future opportunities and action plans in the development of New Age Ukraine after the victory in the war against Russia.
We believe that Ukraine will offer a variety of business and investment options in the post-war period, as the times of big challenges come with big opportunities. Therefore, the study aims at highlighting the economic potential of our country along with the future global role of strong and democratic Ukraine.
KYIV RYSING study is based on the application of our comprehensive data-driven approach, which allows us to generate and combine insights from different sources. It includes official facts and figures from Ukrainian and international public sources; results of the survey conducted among the Ukrainian population, as well as interviews with opinion leaders, including top business representatives, international politics, and military experts. This approach allows us to evaluate the situation from a 360-degree perspective and share it with our international audience.
The annexation of Crimea in 2014 and the start of the military aggression of Russia in Donbas deprived 20% of the Ukrainian economy, while the total damage amounted to 150 Bn USD. In 2015, real GDP decreased by 9.8% compared to 2014, and during 2014-2016, the Ukrainian economy lost 38% of its GDP because of the banking system crisis. To cope with the growing inflation and budget deficit, the government conducted a number of reforms to stabilise the macroeconomic and fiscal policies. Another disruptive factor impacting the Ukrainian economy was the COVID-19 pandemic that started in 2020, causing a 3.8% decrease in the Ukrainian GDP compared to 2019. But the increased demand for Ukrainian goods, especially metal and agricultural products, revived economic growth in 2021. Before the war, the GDP was forecasted to grow by 3.2% in 2022.
Since 1991, the IT sector in Ukraine has boosted its development thanks to highly professional IT specialists and the growing interest of global tech companies. Google, Oracle, and Ericsson were among the key global firms that established R&D centres in Ukraine. Despite a relatively small share in GDP in 2021 (2.7%), IT services increased their share in service exports to 37%, with the USA and the UK being the leading export destinations. In recent years, the IT sector generated twice as much export revenue as the gas transmission system or 25% of the agricultural sector’s export revenue.
As of 2021, 5,000 IT companies are operating and over 289 thousand IT specialists are employed in Ukraine. IT firms have grown in both size and number, creating a demand for high-quality office spaces with robust tech infrastructure, hosting over 3,000 tech events, and investing approximately 832 million USD in start-ups.
AI-powered writing assistant that reviews spelling and grammar.
App providing a possibility to develop, secure, and operate software in a single source.
AI-powered revenue intelligence programme.
Leading full-service blockchain technology company.
AI-powered revenue intelligence programme.
Leading full-service blockchain technology company.
In 2020, Ukraine launched the Diia application, which enables Ukrainian citizens to use digital documents on their smartphones instead of physical documents for identification and sharing purposes.
During the war, the Ukrainian IT sector managed to slightly strengthen its position compared to other industries. In March-May 2022, the IT sector generated 1.7 Bn USD in sales — 6% higher than in the same period in 2021. Such a positive performance was mainly driven by a successfully implemented remote work scheme, active international contracts, and a general trend towards opening offices outside Ukraine to hedge the operating risks. On the other hand, since February 2022, all exporters, including the IT industry, have been obliged to exchange their revenues into foreign currency at a fixed rate, which is about 10% lower than the market rate, hence lowering the IT industry’s profits.
Although IT companies have successfully moved a part of their employee workforce out of Ukraine and continued operations, the invasion has brought new challenges to the IT sector, provoking uncertainty as to the future path and the development of the IT industry in Ukraine.