Analytics, Construction, Financial Services, Latvia, Legislation, Shadow economy, Wages

The minister claimed that the first results in the fight against shadow economy have already been observed, and pointed out to a recent study by an Austrian professor that Latvia's shadow economy proportion to GDP was at 23% last year, compared to 24.9% in Lithuania and 25.9% in Estonia. ''We put ourselves down frequently, but we see that we can be better than our neighbors in some areas,'' she said.

She emphasized that reducing the shadow economy proportion would mean greater tax revenue.

''Much was done last year to curb shadow economy, like, for example, the restriction of cash transactions, and new tax policies. Furthermore, the structural reforms at the State Revenue Service will also be concluded in the near future,'' she said.

She added that the state will now begin concentrating on the sectors where shadow economy has the largest proportions, like construction.