Companies@UA: База компаний Украины

Kyiv, July 31 (Interfax-Ukraine) – The level of the shadow economy in Ukraine grew to 36% of the country's gross domestic product in first quarter of 2009, the Economy Ministry's Web site has reported.

According to the report, the increased level of the shadow sector was indicated by all calculation methods.

Ministry officials said that the trend results from the political instability in the country.

Apart from that, according to the report, ineffective tax policy is also one of the reasons for high level of shadow economy.

The officials also noted the ineffective budget policy, which failed to maintain the effective use of funds, as one of the causes of the problem.