Page 28 - UKRRptFeb23

The European Union will extend trade liberalization with Ukraine. The EU is leaning toward prolonging full trade liberalization with Ukraine in order to support its economy in the face of industrial concerns. The bloc is likely to expand those measures because they are providing tangible economic support to Ukraine in a difficult moment, said European Commission VP Valdis Dombrovskis. In June of 2022, the EU adopted temporary full trade liberalization with Ukraine and the suspension of trade defense measures for one year as part of its response to Russia’s invasion of the country. EU member states noted the increased volume of some imports, including grain, poultry, and eggs.
Ukraine increased IT exports by 8.4% in November. In November 2022, the IT services export turnover increased by 8.4% and brought in $45M more than in October. At the same time, when compared with 2021, the volume of exports in November was still 14% lower than in that year, says analysts from the Lviv IT cluster. It is noted that in November, the export of computer services still accounted for almost half of the total export of services - 44.3%. This is 5.4% more than in 2021. In general, for 11 months of 2022, the share of IT exports is 45.3%, which is 7.9% more than for the same period of 2021. In addition, for January-November 2022, the export of IT services grew by 7.3% and brought in more than $6.5B, exceeding the figure for 2021 by $447M. At the same time, the total export turnover for all services during this period decreased by 11.5% compared to 2021.
IT was the only export sector that showed growth in 2022. For the last 11 months of 2022, the export of goods and services fell by 29% - from $73.2B to $52.2B. The export of goods decreased the most, by 34%, and though it also declined, the export of services suffered less and decreased by 11%. Compared to last year, the share of services export increased from 22% to 28%, reports Opendatabot. A small percentage of the decline in services export was compensated by growth in the IT sector in 2022. In November alone, this segment grew by 8%. In total, for 11 months, the IT sector earned at least 7% more from exports than in the corresponding period last year: $6.6B against $6.2B. The share of IT in the export of goods and services increased from 8% last year to 13% in 2022. Thus, the IT sector share is 45% of all service exports.
Despite the war, Ukraine managed to increase its exports to the EU.
According to 2022’s results, the export of goods to EU countries increased by 4.2% compared to 2021 and amounted to about $28B. According to the Ministry of Economy, this growth became possible due to the opening of EU markets for Ukrainian goods through the EU initiative Paths of Solidarity, the customs visa-free program, the transport visa-free program, etc. The agency predicts that the dynamics of Ukraine's foreign trade indicators in 2023 will trend in the direction of gradually recouping the losses incurred in 2022. The budget for 2023 envisages a 7.2% increase in the export of goods and services. This is in consideration of the production complex situation, with access to three ports on the Black Sea to export agro-industrial products, the gradual expansion of domestic demand, the global demand for IT services, etc.
Ukraine set a record for exporting dairy products to Europe.As Deputy Minister of Agricultural Policy Taras Vysotskyi said, in the export structure, the agricultural sector comprised 53% of the total figure last year. More than $23B
28 UKRAINE Country Report February 2023 www.intellinews.com