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Shadow economy in Kyrgyzstan ranges from 23 to 37 percent of GDP


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September 12, 2019, 17:56       Источник 24.kg       Комментарии

According to various estimates, the level of shadow (non-observed) economy in Kyrgyzstan can range from 23.6 to 37 percent of GDP. Information Support Department of the Government's Office reported.
According to the National Statistical Committee, the volume of non-observed economy in 2017 amounted to 125.2 billion soms. Compared to the previous year, its share in gross domestic product decreased by 0.9 percentage points and amounted to 23.6 percent. The National Statistical Committee is currently in the process of assessing the volume of non-observed economy for 2018.
However, according to preliminary data based on the results of an independent study of the non-observed economy conducted by SIAR Research & Consulting in June 2019, its level in Kyrgyzstan amounted to 29.8 percent of GDP. The survey involved 502 small, medium and large enterprises.
Pricewaterhause Coopers LLP (PwC) voices an even larger number. Its study showed that the level of the shadow economy is estimated at 37 percent of GDP.
The study is based on a survey of 302 business entities.
"A draft government decree has been prepared on approving an action plan to reduce the level of the non-observed sector of the economy for 2019-2021. It is aimed at reducing the level of the non-observed sector of the economy, eradicating the reasons that encourage economic entities to go "into the shadow", as well as minimizing corruption risks and creating favorable conditions for doing business. The project is posted on the official website of the Government for public discussion," the Cabinet said.

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