Level of shadow economy in Uzbekistan makes 50% of GDP

Tashkent, Sept.19, 2019. /Kabar/. The level of shadow economy in Uzbekistan is estimated at about 50% of GDP. This became known during the round table, organized by the Ministry of Economy and Industry together with UNDP Office in Uzbekistan, and the Central Bank.
According to Dr. Hasan Abulkosimov, the professor at the National University, the main economic reasons for the shadow economy are the large number taxes, fees and contributions, and its sizes.
"There may also be reasons such as a lack of sufficient funds in enterprises, problems with banks related to the implementation of settlements, payments, cash withdrawals, quality of service, high interest rates on loans," the Uzbek professor said.
The participants noted the main reasons of non-economic nature are the lack of necessary knowledge and experience of entrepreneurs, competition from other entrepreneurs, quality of production infrastructure, bureaucratic barriers to organizing and conducting business, corruption and insecurity of property rights.
According to the World Bank, the average level of the shadow economy in the world is 17.2 % of GDP, but this varies from country to country. For example, in Switzerland it is 8.6%, in Russia- 43.6% and in Bolivia it is 66.4%.