A Peek into the Resilient Belarusian IT Sector
The IT sector's economic growth in Belarus is picking back up.
Take a gander at the dynamic landscape of Belarus' IT sector, which is tilting towards steady growth, as unveiled by Andrei Kartun, the First Deputy Minister of Economy. This tech-savvy sector, alongside key players like construction, trade, and industry, is actively bolstering the nation's economy.
During the first quarter of 2025, the IT industry's expansion rate clocked in at 6%, paving the path for a rise in its share within the country's GDP, currently hovering around 3%. Kartun predicts that with strategies in place to boost domestic demand for IT goods, this sector could soon reclaim its position as the primary engine of economic growth, much like it was several years past.
Post-2022, there's been a strategic reorientation in the export of domestic IT services, with residents of the High Technology Park successfully navigating the new landscape and forging alternative paths for growth. Formerly, the primary export destinations were the EU and the US, but with sanctions at play, there's been a notable shift towards CIS countries, where exports have tripled. The supply of Belarusian IT solutions to Asian nations is also on the rise.
Meanwhile, employment within the sector has surged, with an additional 1,500 jobs added in Belarus in 2024. The burgeoning domestic demand for digital goods, including from the state, is aiding the sector's development.
Inside the Belarusian Tech Scene
Growth and Contribution to the Economy
- The IT sector aims to contribute more than 7.5% to Belarus' GDP in future[1].
- Despite facing sanctions, the sector has demonstrated remarkable resilience, adapting to evolving market situations[1].
Export Markets
- Historically, the EU and the US were key export destinations. However, there's been a significant shift towards CIS and Asian countries, with exports to these regions tripling[1].
Employment and Domestic Demand
- Initial demand for IT goods was low domestically, but recent interventions have sparked growth in this area[1].
- The High-Tech Park residents have successfully adapted to changing circumstances following 2022, ensuring consistent operations amidst international challenges[1].
Future Prospects
Growth Potential
- Projections indicate a strong emphasis on digital economy development. Although growth might decelerate in Q2 and Q3 of 2025 due to external factors, the long-term outlook remains positive[1].
Market Diversification
- Continued expansion into CIS and Asian markets is expected to fortify the sector's role in Belarus' economy[1].
Economic Support
- Government initiatives to boost domestic demand for IT products and services will play a pivotal role in sustaining growth[1].
Economic Context
Belarus' overall economic growth stood at approximately 4% in 2024, with a similar momentum anticipated for 2025, despite hurdles in maintaining high growth rates due to a robust baseline[2][3]. The IT sector is poised to be a significant catalyst for this growth alongside other sectors.
Key Figures
- GDP Growth in 2023: 3.9%[4].
- Projected Regional Growth for Europe and Central Asia in 2025-26: 2.5%[5].
- Belarus' GDP Growth in Q1 2025: 3.1%[3].
- Andrei Kartun, the First Deputy Minister of Economy, predicts that the IT sector will contribute more than 7.5% to Belarus' GDP in future.
- The sector has demonstrated remarkable resilience, adapting to evolving market situations, as evident in the tripling of exports to CIS and Asian countries post-2022.
- The additional 1,500 jobs added in Belarus' IT sector in 2024 are a result of the burgeoning domestic demand for digital goods, including from the state.
- For the long-term outlook, projections indicate a strong emphasis on digital economy development, although growth might decelerate in Q2 and Q3 of 2025 due to external factors.
