Level of shadow economy in Ukraine reached 34% of GDP in 2016

This has been stated in a preliminary report released by the Economic Development and Trade Ministry.

In particular, the level of shadow economy was reduced due to the consolidation of macroeconomic stability and the renewal of economic growth; improvement of business climate due to the carried out deregulation policy; and the legalization of the labor market due to a lower social security tax.

At the same time, the process of de-shadowing is hampered by a number of problems that negatively affect the indicators of Ukraine’s economic development as a whole. In particular, significant challenges to the stability of Ukraine’s financial system in the conditions of the ongoing liquidation of insolvent banks and their withdrawal from the market; tensions in international relations with the Russian Federation; the presence of government uncontrolled territories; low confidence in the institutions of power.

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