In Ukraine shadow economy down to 33% of GDP

The size of shadow economy was down to 33% in January-September 2017 from 36% a year earlier, the EconMin has estimated. Judging by electricity consumption, shadow economy was down 2pps to 30%; based on monetary statistics, it was down also 2pps to 23%; judging by household spending and retail sales, it was down 3pps to 48%; and judging by corporate losses, Ukraine’s shadow economy was down 3pps to 22% in January-September, said the EconMin.

The EconMin attributed the continuing decline in the size of shadow economy to macroeconomic stabilization and economic recovery, an improved business climate and the continuing deregulation, and better expectations of both businesses and households. Shadow economy had peaked in 2014, when economic crisis erupted and Moscow waged a war on Ukraine, annexing Crimea and sending troops to the Donbass.

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