Analytics, Education and Science, EU – Baltic States, Latvia, Legislation, Shadow economy

International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 08:56

Schneider: proportion of shadow economy in Latvia in 2014 – 24.7%; in 2015 – 23.6%

BC, Riga, 03.06.2015.Print version
The proportion of shadow economy in Latvia last year was 24.7% of the gross domestic product (GDP), while proportion this year could reach 23.6%, according to calculations by Dr. Friedrich Schneider from the Johannes Kepler University of Linz, informs LETA.

Schneider's study shows that Latvia registers eighth highest proportion of shadow economy in the European Union (EU).

 

Meanwhile, proportion of shadow economy in Lithuania and Estonia in 2014 was at 27.1% of GDP. The forecast for 2015 in these countries is 25.8% and 26.2% respectively.

 

The average proportion of shadow economy in the EU currently stands at 18.3%. According to Schneider, Latvia and the rest of the Baltic States are among 21 EU countries, where the proportion of shadow economy keeps falling.

 

Schneider explains the falling shadow economy with recovery from the global economic crisis and the fact that economically beneficial conditions facilitate honest economic activities, as economic growth plays a key role in reduction of shadow economy.

 

As reported, the proportion of shadow economy in Latvia in 2014 made up 23.5% of GDP, and, compared with 2013, has reduced by only 0.3%. Statistically, this change is insignificant, which is why the level of shadow economy in Latvia remains the same as in 2014, said Arnis Sauka, the author of the latest "SSE Riga" report on Baltic shadow economy.






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