Shadow Economy in Bulgaria On the Rise

Business | September 4, 2014, Thursday // 13:12| Views: | Comments: 0
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Bulgaria: Shadow Economy in Bulgaria On the Rise File photo.

Bulgaria comes first among all EU member states in terms of shadow economy rates, Rositsa Dzherkova from Vitosha Research claimed at an international round table, Thursday.

The discussion, which focused on informal economy and undeclared work, was organized by the Center for the Study of Democracy and the University of Sheffield.

Shadow economy in the EU reports an average level of 18.5%, while in Bulgaria it has reached 31.2 percent, according to the survey conducted last year, cited by Econ.bg. The term shadow economy includes both grey and illegal economy.

Nearly 5% of Bulgaria's population has undertaken undeclared work in 2013. About 30% of people who have a second job, do not declare their income. Meanwhile, 16% of respondents in the survey admit that they buy goods at the grey market.

Some 81% of companies in Bulgaria have complained about having difficulties regarding administrative procedures. Corruption and inability to forecast the business environment continue to trouble the businesses, as well.

Bulgaria must adopt strong measures aimed at the administrative reform and the control over grey economy, as well as over the legal systems, the report of the Center for the Study of Democracy and the University of Sheffield states, as quoted by Econ.bg. The quality of public services also needs improvement.

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Tags: shadow economy, grey market, Center for the Study of Democracy, informal economy, undeclared work
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