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September 18, 2021

Romania, second-largest shadow economy in Europe, as share of GDP

Shadow economy in Romania significantly diminished over the last 10 years, following the measures in preparation of the accession to the European Union, the global financial crisis and the impetus of electronic payments, according to a report released by Visa Europe. Shadow economy in Romania is estimated at EUR 39.6 bln in 2013, down more than 3.5 pc against 2008 and almost 15 pc compared to 2003. Despite this evolution, Romania still ranks second in Europe based on the share of the GDP represented by shadow economy, estimated at 28 pc in 2013, same as in Croatia, Estonia and Lithuania, while Bulgaria ranks first with 31 pc, finds the survey released by Visa Europe. Shadow economy in Romania had a mixed evolution in absolute terms, starting with 2008, despite the obvious trend of limiting this phenomenon that was registered for the last 10 years, according to the report ‘Shadow economy in Europe.’ During 2010-2013 shadow economy slightly advanced in absolute terms because of austerity measures and the persisting public perception about corruption going unpunished. Romania’s GDP, expressed in EUR, will return this year to its value of 2008, while shadow economy will diminish by EUR 1.5 bln during this interval, according to estimations included by Visa Europe in its report. (K.L.)

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