Gray Economy Thrives in Northeastern Bulgaria - Survey

Business | November 19, 2010, Friday // 15:36|  views

Gray economy flourishes on unregulated labor relations in Northeastern Bulgaria, where it is most widely spread from all other parts of the country and accounts for nearly 20%, shows data of the Bulgarian Chamber of Commerce and Industry.

The survey encompassed 6300 employers, employees and trade unionists in ten economic sectors in sixty regions.

The Northwestern parts of the country, including the towns of Vidin, Montana, Vratsa, Pleven and Lovech, boast the highest number of signed labor contracts – 97.8%, which quite higher than the average levels.

The gray economy makes up about 40% of Bulgaria's GDP, shows a study of international consultancy AT Kearney, released last month shortly after a Bulgarian minister mentioned a figure that is four times smaller.

According to the report, which encompasses 31 European countries, 37.7% of Bulgaria's GDP (or a little over BGN 31 B) is in the gray economy. Bulgaria is surpassed only by Latvia and Estonia.

Bulgaria's Regional Development Minister Rosen Plevneliev argues that the gray economy was about 10-12% of the expected 2010 GDP, and amounted to BGN 7 B.

In countries such as Germany and France, the gray economy is reported to be about 1/8 of the national GDP, and about 10% in the UK, while in all of the surveyed European states combined it is found to be a total of EUR 1.8 T.

We need your support so can keep delivering news and information about Bulgaria! Thank you!

Tags: Bulgarian Chamber of Commerce and Industry, Northwestern, Northeastern Bulgaria, value-added tax, VAT, gray economy, Visa Europe, AT Kearney, tourism, construction


» Related Articles: