The share of the shadow economy in Ukraine in January-September 2017 shrank to 33% of GDP, decreasing by 3 percentage points (pp) compared to the same period of 2016, according to materials posted on the website of the Ministry of Economic Development and Trade.
“All the four methods used to assess the level of the shadow economy showed a decrease in the share of the shadow economy compared to the same period in 2016,” the ministry said.
This happened against the backdrop of the moderate growth of production, the stable forex rate and moderate inflation. The share of the shadow economy decreased thanks to an improvement in the expectations of businesses and households, the weakening of investment risks, it said.
At the same time, the dynamics of the reduction in the share of the shadow economy are hampered by low confidence in the institutions of power, ongoing challenges to the stability of the financial system and the occupied areas in the east of the country, it added.
The highest share of the shadow economy has traditionally been revealed by the method of comparing households’ expenditures and retail turnover, according to which the shadow economy accounts for 48% of GDP. However, this indicator is 3 pp below similar calculations for the nine months of 2016.