KIEV, July 3 (Xinhua) -- Ukraine's shadow economy decreased by 6 percentage points to 34 percent of the gross domestic product (GDP) in 2016 amid an overall recovery, the Economic Development and Trade Ministry said on Monday.
The restoration of the economic growth and the slowdown in inflation were the main factors that hit the underground economy, the ministry said in a statement.
Among other aspects that contributed to the decrease, the ministry listed the improvement of the business environment and the reduction of the payroll tax.
The banking crisis, tensions with Russia and the conflict in eastern regions are the key imbalances that still contribute to the development of the informal economy, the ministry said.
Ukraine's shadow economy has been contracting since 2014, when it stood at 42 percent of the GDP, its highest level in nearly a decade.
