Share of Ukraine’s shadow economy declines to 31% of GDP in 2017 – Economic Development Ministry

This is reported by the press service of the Economic Development and Trade Ministry.

“According to the Economic Development Ministry, the share of [Ukraine’s] shadow economy in 2017 totaled 31% of official GDP, which is four percentage points less compared to the figures of 2016,” reads the report.

The ministry notes that the de-shadowing of the Ukrainian economy became possible due to maintaining relative macro-financial stability in the context of implementing the policy aimed at increasing domestic demand and diversifying the markets for Ukrainian producers. Also, it became possible due to maintaining a high level of business activity in the conditions of better expectations of Ukrainian reforms in the world and reducing investment risks under the relative macro-financial stabilization and the continuation of the processes of reforming the economy.

At the same time, the dynamics of de-shadowing is restrained by unresolved issues, which adversely affect the development of the country's economy as a whole. In particular, this is low confidence in the institutions of power; significant challenges to the stability of the country's financial system; the presence of government uncontrolled territories formed in the course of military aggression in the country.

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