The level of shadow economy in Ukraine declined to 32%

According to estimates of the Ministry of economic development Ukraine’s economy continues to emerge from the shadows.

Рівень тіньової економіки в Україні знизився до 32%

The level of shadow economy in Ukraine in January-September 2018 declined 1 percentage point (VP) compared to the same period in 2017, said in the published report, Ministry of economic development (MEDT), informs Rus.Media.

“Two of the four methods, which assesses the level of shadow economy, showed a decrease compared with the nine months of 2017,” the document reads.

The calculation of the other two methods are not diagnosed, according to the Ministry.

As noted by the Ministry, the legalization was the result of maintaining a positive economic trends and signs of General economic stabilization, strengthening of market trends and the gradual optimization of price formation in domestic markets, including through deregulation of markets, along with the NBU implemented a tight monetary policy. Positive dynamics also contributed to a continued positive business environment, which is, according to the authors of the report, shows high levels of business activity and the improved expectations.

At the same time, the dynamics of deshadowization of Ukrainian economy is constrained by unresolved problems that have a negative impact on the economic development of the country as a whole, in particular, the presence of uncontrolled territories and the conservation challenges for the stable functioning of the financial system, the document says.

“Comparing similar indicators from previous years, it should be noted that 32% is the lowest level in the last ten years is based for the period of nine months every year”, – stated in the report.

The highest level of the shadow economy traditionally found method “expenditure – retail turnover” – 49% of GDP, which is 3. p. lower in comparison with January-September of 2017. This was accompanied by an increase in trade in the legal sector rapidly, notes the report. At the same time, an improved method “expenditure – retail turnover” showed an increase of 2. p. up to 55% of GDP, which the Ministry attributed to increasing purchasing power.

The electrical method showed a decrease in level of shadow economy on 1. . p. to 22% of GDP.

Thus the calculations by the monetary method showed no changes compared with the same period of 2017 – the corresponding figure remained at 23% of GDP, as the monetary method and the improved – at 38% of GDP.

The level of shadow economy by the method of loss-making enterprises reached 22% of GDP, which corresponds to the level of the same period of 2017.

The Ministry recorded by the method of loss increase in the level of the shadow economy in four sectors: “transport and warehousing, postal and courier activities”, the processing industry, operations with real estate, financial and insurance activities”. The declining trend in the “shadow” remained in the mining industry and construction.