Economy Ministry: Ukraine’s shadow economy declining

The share of Ukraine’s shadow economy in January-September 2017 totaled 33% of GDP, which is 3 percentage points less compared with the same period in 2016, the press service of the Economic Development Ministry reports. 

“According to the preliminary data of the Economic Development Ministry, the share of shadow economy in January-September 2017 totaled 33% of official GDP, which is 3 percentage points less compared with the same period in 2016,” reads the report.

According to the ministry, the shadow economy in Ukraine declined due to gradual production growth, exchange rate stability and moderate inflation. The wakening of investment risks against macro-financial stabilization and the continuation of economic reforms also contributed to such results.

At the same time, the ministry added that “among the factors that negatively affected the economy over the nine months of 2017 and contributed to shadowing, were low trust in the institutions of power and the presence of territories uncontrolled by the government”.

iy