IT sector development fading | Belarus Conference in Stockholm

Presented by Anastasia Luzgina during the conference "Belarus at the crossroads: The complex role of sanctions in the context of totalitarian backsliding" on April 23, 2024.

1. IT sector development fading Anastasiya Luzgina 23 April, 2024

2. Flourishing of the IT sector of Belarus Main factors In 2010, the share of the Information and Communication sector in GDP was 2.5%, while in 2021 it reached 7.4%. The export of computer services increased from $ 217.7 million in 2010 to $ 3 , 022.4 million in 2021 . The number of employees grew from 79.2 thousand to 144.3 thousand people by 2021. The reasons T ax benefits for HTP residents Presidential Decree № 8 "On the Development of the Digital Economy". Work with US and EU clients The highest s alaries in the country Well-qualified technical specialists HTP export growth https://www.belta.by/president/view/kakoe-buduschee-zhdet-belorusskij-it-sektor-razbiraemsja-v-poslednih-zajavlenijah-lukashenko-ob-543196-2023/

3. Sector co mpression from 2023 Main factors The reasons Deterioration of political and economic situation War in Ukraine Sanctions and difficulties of international transfers Reluctance of Western partners to work with companies from the co- aggressor country

4. Perspectives Some IT companies and specialists are reorienting towards Russia. Russian companies will continue establish their R&D offices in Belarus. S ome countries begin to compete with Belarus on comfortable legal and tax environment (Uzbekistan). The qualification level of IT specialists may deteriorate. The IT sector will continue to work, but will cease to be a powerful driver of the Belarusian economy. T he opportunity for Belarus to position on the global market as a regional IT leader has been missed. https://ru.wikipedia.org/wiki/Российско-белорусские_отношения