The shadow economy in Ukraine in January-September 2015 reached 40% of GDP, which is better than 41% of GDP in January-September 2014 and 42% of GDP in January-June 2015, the Economic Development and Trade Ministry of Ukraine has reported in its study published on its official website on Thursday.
“Bringing of the economy from the shadows was hindered by several unresolved problems: the large tax burden on the corporate sector along with the large cost of credit resources; the unfavorable foreign economic situation, a fall in internal demand and growth of expenses on imported raw materials and materials due to [hryvnia] devaluation and the introduction of the additional imports duty; availability of large investment risks; the worsening of international relations with Russia and the loss of markets by Ukraine,” the ministry said.
The ministry delivered the pace of the shadow economy using four methods for the period from January to September 2014, the entire 2014, from January to June 2015 and from January to September 2015, pointing the decline for all methods in the third quarter of 2015.
As for the “public expenses-retail goods turnover” method it was 56% – 58% – 54% – 54%. As for the loss of companies – 36% – 31% – 40% – 33%; power – 32% – 38% – 35% – 34%; and monetary 31% – 33% – 37% – 30%.
