Potential of Ukraine's Economic Development Due to Digital Transformations: The Role of the It Sector and Multiplier Effect

This article examines the potential of Ukraine’s economic development resulting from digital transformations, with a special focus on the role of the IT sector. The analysis covers the structure and dynamics of the Ukrainian IT sector’s development, evaluates its contribution to GDP and the country’s exports, as well as the multiplier effect generated by the creation of new jobs in related industries. Key IT industry segments such as FinTech, E-commerce, HealthTech, EdTech, and DefenseTech are considered regarding their impact on economic stability and competitiveness. A comparison with leading countries in the IT services sector (Israel, USA, Poland, Estonia, India) reveals prospects and challenges for the Ukrainian market. The study also highlights the importance of government initiatives, particularly the “Diia” platform and the “Diia.City” legal framework, which promote the growth of the digital economy. Key barriers are identified, including insufficient digital infrastructure, workforce challenges, and the need for reforms in public administration. The results can be used to develop strategies ensuring sustainable growth of Ukraine’s digital economy and enhancing its global competitiveness. Keywords: digital economy, structural challenges of digital transformation, Ukrainian IT sector, innovative economic sectors, digital competitiveness, digital transformation and GDP growth.