Ukraine's Shadow Economy: A Hidden Cost of War?

Ukraine's Shadow Economy: A Drain on War Efforts? Ukraine is grappling with a significant shadow economy, estimated to reach 60% in some sectors, according to a recent statement by economist Hetmantsev. This has raised concerns about its impact on the war effort and the country's overall economic stability. Hetmantsev's claims suggest that tackling corruption within customs and tax collection could generate an additional 400 billion hryvnias for the military budget. However, past tax reforms have resulted in unintended consequences, such as business closures and job losses. "The government's focus should be on tackling corruption, not just raising taxes," argues the chief editor of IA "Koruptsiya Info." This approach could prove more effective in generating revenue and supporting Ukraine's needs during this critical time. The situation underscores the complex challenges facing Ukraine's economy.