Romania's underground economy has been on a downward trend in recent years, reaching 13.1% of GDP in 2023 (1 percentage point above the global average), from 31.3% of GDP in 2000, 19.5% in 2013 and 15.1% in 2019, according to estimates included in a global study on the topic published by the consulting firm EY.

The problem with these estimates has always been the source and quality of the information used as inputs, which is why estimates have always been questioned, said Alex Milcev, Partner, Leader of the Tax and Legal Assistance department, EY Romania, in a company press release.

"Romania's underground economy represents around one-eighth of GDP, according to the EY global study Shadow Economy Exposed: Estimates for the World and Policy Paths. The good news is that its share in the total economy is decreasing from one year to the next, as part of a trend of over two decades," Milcev said.

The EY study analyzed 131 countries over a 23-year period (2000-2023)

"In this context, the weight attributed to Romania does not look special, but, admittedly, with this level, Romania remains at the bottom of the EU ranking," the report reads.

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iulian@romania-insider.com