DIGITAL TRANSFORMATION AND ECONOMIC DEINDUSTRIALISATION: IMPACT ON STATE FINANCIAL SECURITY

In the context of global challenges, digital transformation acts as a catalyst for emerging threats and heightened systemic risks, including those associated with premature economic deindustrialisation. Therefore, this study of the interrelationship and dual impact of accelerated digital transformation and economic deindustrialisation on state financial security is unequivocally relevant in the context of the comprehensive digitalisation of socio-economic relations. Through quantitative data analysis using Ukraine's economy as a case study, the study examines the correlation between information technology sector growth and declining industrial production, using energy consumption patterns as a key indicator. The key findings demonstrate a strong negative correlation between digital sector expansion and traditional industrial output. The analysis indicates that rapid digital economic development is leading to changes in sectoral proportions, primarily through the expansion of the digital sector, while simultaneously facilitating deindustrialisation processes. Furthermore, the study identifies critical vulnerabilities in state financial security arising from this economic restructuring, including reduced tax revenues from traditional industries, increased economic instability, and growing dependence on digital infrastructure. The study concludes that while digital transformation stimulates innovation and creates new economic opportunities, it simultaneously generates additional threats to state financial security through accelerated deindustrialisation. This study contributes to the understanding of contemporary economic transitions and their implications for national financial resilience, suggesting that the modern paradigm of ensuring financial security should be based on minimising the risks associated with rapid digital transformation while leveraging its benefits for sustainable economic development.