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 Shadow economy in Ukraine reaches record high since 2007 - Ministry of Economic Development

The level of the shadow economy in Ukraine increased by seven percentage points in 2014 in comparison with 2013 - up to 42% of the GDP, a record since 2007.

This was stated by the Ministry of Economic Development and Trade (MEDT) citing a study it conducted, Censor.NET reports citing Interfax-Ukraine.

The study notes that the level of shadow economy reached an unprecedented level last year and was caused by the military conflict in the country, financial destabilization (significant deficit of the balance of payments, price and exchange rate shocks, growing unprofitableness of production), increased panic of economic agents, and increased the administrative burden.

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According to the ministry, at the end of 2014 all the methods of calculating the shadow economy showed its growth in comparison with 2013 year. In particular, the "electric" method (comparison of growth of electricity consumption to GDP growth) showed an increase by 9 points - up to 39% of the official GDP, the monetary method - 8 points up to 32%, the "expenses of the population - retail trade" method - 7 points up to 57%, the method of enterprises loss-making - 5 points up to 34%.


 
 
 
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