THE SHADOW ECONOMY AS A FACTOR OF THREAT TO THE FINANCIAL SECURITY OF THE STATE

Abstract

The shadow economy is present in all countries of the world. As for Ukraine, our country currently has the highest level of shadow economy among other Eastern European countries. The shadow sector of the economy in Ukraine has spread with the participation of corrupt power structures that have committed various economic crimes. These crimes include the illegal use of state funds and the export of material assets abroad and the legalization of proceeds of crime, the illegal privatization of state and communal property, as well as fraud with securities and currency assets. These crimes include the illegal use of state funds and the export of material assets abroad and the legalization of proceeds of crime, the illegal privatization of state and communal property, as well as fraud with securities and currency assets. All this led to the growth of the shadow economy, which worsens the financial security of the state. To ensure competitiveness and achieve profit maximization and development in the sphere of transparent trade, it is necessary to create effective mechanisms for analysis, research and resolution of problems related to the shadow economy. Researching this issue at the scientific level and establishing the mechanisms of its practical application are important both for scientists and for participants in economic activity. Taking into account the fact that the market is constantly developing and the shadow economy sector is growing along with it, the issue of the shadow economy remains, which confirms the relevance of the chosen topic, because the shadow economy has a great impact on various spheres of social life and economic development. Currently, our country has the highest level of shadow economy among other Eastern European countries. The shadow sector of the economy in Ukraine has spread with the participation of corrupt power structures that have committed various economic crimes. These crimes include the illegal use of state funds and the export of material assets abroad and the legalization of proceeds of crime, the illegal privatization of state and communal property, as well as fraud with securities and currency assets. All this led to the growth of the shadow economy, which worsens the financial security of the state. The article examines the influence of the shadow economy on the financial security of Ukraine, considering the causes and consequences of its illegal activities. The role of the financial component in the system of economic security of the state is also considered. Scientific approaches to determining the essence of financial security are considered, as well as the main factors threatening the stability and stability of the financial system are analyzed. The author lists the main directions of reducing the level of the shadow economy in order to increase financial security and provides methods for calculating the shadow economy.