Economist: Bulgaria 3rd among 37 by 'Shadow Economy'Business | August 13, 2010, Friday // 15:54| views
37% of all business transactions in Bulgaria are not taxed, according to an “Economist” article. File photo
A new report published in the UK “Economist” reveals the size of the so-called 'shadow economy' around the world is growing, according to Friedrich Schneider, of Linz University in Austria.
The report points out that for the first time in a decade, transactions taking place outside the taxable and observable frame of the official economy captured by Gross Domestic Product (GDP) numbers are increasing.
Schneider explains shadow economy does not mean criminally acquired gains, but t is rather a form of tax evasion - legal economic activity that is not taxed,.
The author attributes this growth of informal transactions to the financial crisis.
An even more alarming trend on local level is that Bulgaria ranks third among 37 other countries by the share of the shadow economy - over 37%, according to the estimate, only behind Latvia and Estonia.
The countries topping the chart by the smallest share of informal transactions, below the average for those studied, are the US, Japan, the UK and Germany.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!