How much money revolved in the “shadow” of the Ukrainian economy in 2018: the numbers are impressive

In 2018 the “shadow” had the money at 30% of official GDP of the country, and is 2% less compared to the 2017 year. But still says more than a trillion UAH, which is twice more than the international reserves of Ukraine.

This was stated in the quarterly report of the Ministry of economic development, “the General trend of the shadow economy in Ukraine”.

The nominal, i.e. at current prices in 2018, the GDP in Ukraine amounted to 3 trillion and 558 billion 706 million.

In the past 2018 in the shadow economy revolved 30% of the money, there are at least 1 trillion 67 billion 611 million UAH (at the average exchange rate in 2018 is over 38 billion dollars; for comparison, international reserves of Ukraine in June 2019 reached only $ 20 billion).

The shadow economy in Ukraine / Ministry of economic development

The economic development Ministry says that in 2017 this figure was 2% higher, and in General since 2009 (which is, recall, a year after the global economic crisis) this is the lowest level of shadow economy in Ukraine.

From these facts, the Ministry concludes that the reforms in the sphere of economy are successful and positively perceived in society.

What is GDP and the shadow economy? GDP or gross domestic product is one of the most important indicators of economic development, it characterizes the financial result of production in the country (both tangible and intangible). Simply put, it is the sum of the values of all the output produced in a country over a certain period, and taxes.

The shadow economy is all economic activity that occurs outside of the state accounting and control. That is, the manufactured products and paid money for it does not take into account the official statistics. Of them do not pay taxes and, therefore, suffers from the country’s budget. Meanwhile, the “shadow” of the enterprise increase their own incomes.

Interestingly, the highest level of shadow economy, according to the Ministry of economic development, recorded in 2014, after the revolution of Dignity, with 43% of official GDP, and the USD – 673 billion 693 million (at the average exchange rate in 2014 is approximately 56 billion US dollars).

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