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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 18:27

Shadow economy contracted in Latvia, increased in Lithuania, Estonia

BC, Riga, 12.05.2016.Print version
The size of shadow economy contracted to 21.3% of GDP in Latvia last year, but increased in Lithuania and Estonia, according to the latest study on the Baltic States' shadow economies conducted by the Stockholm School of Economics (SSE) Riga, cites LETA.

Over the past year, the proportion of Latvia's shadow economy has decreased by 2.2%. At the same time, the Lithuanian shadow economy has grown by 2.5% to 15% of GDP, and Estonia's shadow economy has expanded by 1.7% to 14.9% of GDP.



 

Undeclared income makes up the largest part of Latvia's shadow economy, or 44.4%, undeclared wages account for 34.9% and unregistered employees for 20.3%.

 

In Estonia, undeclared wages make up 59%, undeclared income 20.7% and unregistered employees 20.3% of the country's shadow economy.

 

In Lithuania, undeclared wages make up 42.3%, undeclared income 38% and unregistered employees 19.7% of the country's shadow economy.



 

As reported, in 2014 Latvia's shadow economy reached 23.5% of GDP, a 0.3 percentage points reduction from 2013.

 

In Lithuania, the shadow economy contracted at a faster rate. In 2014, the shadow economy reached 12.5% in Lithuania and 13.2% in Estonia.






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