Study: grey econ­omy pro­por­tion in Latvia reached 22% last year

Baltic News Network - - News -

The pro­por­tion of grey econ­omy in Latvia was 22% of GDP in 2017, which is 1.3 per­cent­age points higher than it was in 2016, ac­cord­ing to re­sults of Grey Econ­omy in Baltic States 2008-2017 study. En­ve­lope wages form 45.5%, un­de­clared in­come – 37.2%, and un­de­clared em­ploy­ees form 17.4% of grey econ­omy in Latvia. Grey econ­omy had in­creased in all three Baltic States last year. Grey econ­omy in Lithua­nia was 18.2% of GDP, which is 1.7 per­cent­age points higher. Estonia’s grey econ­omy in­dex was 18.2% of GDP (up by 2.8 per­cent­age points).

Ar­nis Sauka, co-cre­ator of the Grey Econ­omy In­dex in Baltic States and di­rec­tor of Sus­tain­able Busi­ness Cen­tre of Stock­holm School of Eco­nomics in Riga, ad­mits that en­ve­lope wages present the big­gest prob­lem. It is ob­served in Latvia and other Baltic States.

In 2016, grey econ­omy pro­por­tion in Latvia, ac­cord­ing to in­for­ma­tion from the Sus­tain­able Busi­ness Cen­tre, was 20.7% of GDP.

Pan­therMe­dia/SCANPIX

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