{"id":142420,"date":"2025-06-12T18:49:18","date_gmt":"2025-06-12T15:49:18","guid":{"rendered":"https:\/\/pozirk.online\/en\/longreads\/142420\/"},"modified":"2025-06-12T18:49:20","modified_gmt":"2025-06-12T15:49:20","slug":"it-sector-rebounds-amid-low-base-effect-and-geopolitical-shifts","status":"publish","type":"longreads","link":"https:\/\/pozirk.online\/en\/longreads\/142420\/","title":{"rendered":"IT sector rebounds amid low base effect and geopolitical shifts"},"content":{"rendered":"\n<p><strong>According to data from the National Statistics Committee (Bie\u0142stat), Belarus\u2019 IT sector is showing signs of recovery, with its contribution to gross domestic product (GDP) on the rise.<\/strong><\/p>\n\n\n\n<figure class=\"block-image block-image-normal\">\n\n    <img decoding=\"async\" width=\"1128\" height=\"752\" src=\"https:\/\/pozirk.online\/wp-content\/uploads\/2024\/01\/cyber-pixabay-1128.jpg\" class=\"attachment-full size-full\" alt=\"\" srcset=\"https:\/\/pozirk.online\/wp-content\/uploads\/2024\/01\/cyber-pixabay-1128.jpg 1128w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/01\/cyber-pixabay-1128-354x236.jpg 354w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/01\/cyber-pixabay-1128-734x490.jpg 734w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/01\/cyber-pixabay-1128-178x118.jpg 178w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/01\/cyber-pixabay-1128-768x512.jpg 768w\" sizes=\"(max-width: 1128px) 100vw, 1128px\" \/>\n    <figcaption>\n        \n                    <div class=\"block-image__author\">\n                                <span>(Buffik \/ pixabay.com)<\/span>\n            <\/div>\n            <\/figcaption>\n<\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Low base effect<\/h2>\n\n\n\n<p>The industry experienced a steep decline following the political unrest of 2020 and the Russian invasion of Ukraine in 2022, which prompted many companies to relocate abroad.<\/p>\n\n\n\n<p>Official statistics indicate that the IT and communications sector has been growing since the second half of 2023. The downturn in IT was sharper than the overall economic contraction, which is not surprising given the industry\u2019s deep integration into the global economy and its ties to international markets, investors and research and development centers. As a result, it was among the hardest hit by international sanctions and Belarus\u2019s political isolation.<\/p>\n\n\n\n<p>The recent upturn is largely attributed to the low base effect following this slump. Despite the recovery, the sector has yet to return to its pre-crisis performance.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish\"><div class=\"wp-block-embed__wrapper\">\n<iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" title=\"Interactive or visual content\" src=\"https:\/\/flo.uri.sh\/visualisation\/23637936\/embed#?secret=VdF8RPBqOP\" data-secret=\"VdF8RPBqOP\" frameborder=\"0\" scrolling=\"no\" height=\"575\" width=\"500\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">A new pivot<\/h2>\n\n\n\n<p>From January to April 2025, the IT industry accounted for 5 percent of GDP\u2014up from 4.4 percent in 2024, but still below the 2022 level.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish\"><div class=\"wp-block-embed__wrapper\">\n<iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" title=\"Interactive or visual content\" src=\"https:\/\/flo.uri.sh\/visualisation\/23637948\/embed#?secret=kwxeO1gbfZ\" data-secret=\"kwxeO1gbfZ\" frameborder=\"0\" scrolling=\"no\" height=\"575\" width=\"500\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>However, the strategic direction of the sector has shifted significantly. The domestic IT industry is now increasingly oriented toward the Russian market and domestic Belarusian contracts. At the same time, major international companies continue to rely on Belarusian teams based abroad, rather than those operating inside Belarus.<\/p>\n\n\n\n<p>To mitigate reputational risks, companies working with Russia have separated their Russian and international operations.<\/p>\n\n\n\n<p>Some Russian firms have also been affected by the country\u2019s repressive environment. Earlier this month, Moscow\u2019s Tagansky District Court banned the operations of OOO Lesta\u2014the Russian spin-off of Wargaming, the developer behind <em>World of Tanks<\/em>, <em>World of Warships<\/em>, and other popular games\u2014and ordered the seizure of its assets.<\/p>\n\n\n\n<p>The Russian Prosecutor General\u2019s Office accused Lesta, its owner Malik Khatazhaev, and Belarusian businessman Viktar Kis\u0142y, the founder of Wargaming, of supporting the Armed Forces of Ukraine.<\/p>\n\n\n\n<p>Despite the pivot, major industry players find it increasingly difficult to work with Russia due to sanctions and political risks. Most continue to prioritize Western markets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Sanctions and state interference stifle potential<\/h2>\n\n\n\n<p>In an effort to exert greater political control over the IT sector, the Belarusian government has appointed bureaucrats\u2014not industry visionaries\u2014to leadership positions at the High-Tech Park (HTP). In August 2023, former KGB officer Alaksandar Bazana\u016d was appointed head of the HTP. He was replaced two weeks ago by Hanna Rabava, a former deputy minister of communications and IT.<\/p>\n\n\n\n<p>The government is attempting to integrate the IT industry into its broader command system, similar to other sectors such as agriculture and trade.<\/p>\n\n\n\n<p>Even under these conditions, IT companies can remain profitable, especially through government contracts. However, the scale of their operations remains limited. Russia and Belarus cannot offer the same level of opportunity as markets in the United States, the European Union or Asia. Companies based in Belarus and Russia have lost access to these premium markets due to sanctions linked to human rights abuses and the ongoing Russian war in Ukraine.<\/p>\n\n\n\n<div class=\"insert-block\">\n\n    <div class=\"insert-block__img\">\n        <img decoding=\"async\" width=\"352\" height=\"236\" src=\"https:\/\/pozirk.online\/wp-content\/uploads\/2024\/03\/telefon-president-sputnik-tolochko-1128-352x236.jpg\" class=\"attachment-medium size-medium\" alt=\"\" srcset=\"https:\/\/pozirk.online\/wp-content\/uploads\/2024\/03\/telefon-president-sputnik-tolochko-1128-352x236.jpg 352w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/03\/telefon-president-sputnik-tolochko-1128-731x490.jpg 731w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/03\/telefon-president-sputnik-tolochko-1128-178x118.jpg 178w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/03\/telefon-president-sputnik-tolochko-1128-768x515.jpg 768w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/03\/telefon-president-sputnik-tolochko-1128.jpg 1128w\" sizes=\"(max-width: 352px) 100vw, 352px\" \/>                        <label class=\"insert-block__tag--mobile\"> The Viewer<\/label>\n\n                <\/div>\n    <div class=\"insert-block__text\">\n                    <label class=\"insert-block__tag\">The Viewer<\/label>\n                <h3 class=\"insert-block__title\">Potato shortages expose weaknesses of Belarus\u2019 command economy<\/h3>\n        <div class=\"insert-block__descr\">The potato harvest was poor\u2014but the government\u2019s response to the resulting shortages was even worse. Command system failure Belarus\u2019 potato harvest last year was 22.5% lower than in 2023. While the shortfall alone was not catastrophic, the government&#039;s response\u2014or lack &#8230;<\/div>\n        <a class=\"insert-block__btn-block\" href=\"\/en\/longreads\/141323\">\n            <button class=\"btn\">\n                <div class='btn__text'>Read<\/div>\n            <\/button>\n        <\/a>\n    <\/div>\n<\/div>\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to data from the National Statistics Committee (Bie\u0142stat), Belarus\u2019 IT sector is showing signs of recovery, with its contribution to gross domestic product (GDP) on the rise. Low base effect The industry experienced a steep decline following the political unrest of 2020 and the Russian invasion of Ukraine in 2022, which prompted many companies [&hellip;]<\/p>\n","protected":false},"author":46,"featured_media":61241,"template":"","rubric":[24],"class_list":["post-142420","longreads","type-longreads","status-publish","has-post-thumbnail","hentry","rubric-theviewer"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>IT sector rebounds amid low base effect and geopolitical shifts | Pozirk<\/title>\n<meta name=\"description\" content=\"According to data from the National Statistics Committee (Bie\u0142stat), Belarus\u2019 IT sector is showing signs of recovery, with its contribution to gross\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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