The level of shadow economy in Ukraine in 2017 decreased to 31 percent of GDP, falling by 4 percentage points compared to the figure of 2016, according to the website of the Ministry of Economic Development and Trade.
“All the methods that were used to assess the level of shadow economy showed a decrease in the level compared to 2016,” the ministry said.
According to the ministry, the de-shadowing of the economy last year was a consequence, in particular, of reducing investment risks against the backdrop of relative macro-finance stability and the continuation of economic reforms.
At the same time, this process is restrained by low confidence in power institutions, the persistence of significant challenges to the financial system stability, the availability of the territories not controlled by the authorities, the report says.
The highest level of shadow economy was traditionally revealed by the method “public expenditures-retail turnover” – 47 percent of GDP, although this is 4 percentage points less than the rate for 2016. The ministry explains this by a 6.2 percent larger increase in the volume of sales of consumer goods to the population compared to the volume of 2016 than the adjusted monetary expenditures of the population for the acquisition of such goods, which amounted to 3.4 percent.
