Romania's shadow economy was around a third of the country's Gross Domestic Product (GDP) in 2013, one of the highest levels in Europe, only exceeded by Bulgaria's, according to a study by AT Kearney.

The country's shadow economy was 28.4 percent of the GDP, or some EUR 39.5 billion, up from EUR 38.3 billion in 2012, and EUR 38.8 billion in 2011.

The country's official GDP is of EUR 139 billion. For comparison, the Czech Republic, with a GDP of EUR 154 billion, has a shadow economy of EUR 24 billion, or 16 percent. In terms of percentages, Romania is at park with Croatia, Lithuania and Estonia, also with a 28 percent shadow economy ration, but behind Bulgaria, with its 31 percent ratio. The lowest ratio of the shadow economy is to be found in Slovakia, 15 percent.

In Western Europe, Belgium has the highest share of the shadow economy, 16 percent, or some EUR 63 billion out of a EUR 385 billion GDP. Germany has a 13 percent shadow economy, some EUR 351 billion out of its EUR 2.6 trillion GDP. The lowest ratio is in Switzerland, 7 percent, or some EUR 36 billion within a EUR 507 billion GDP. The European average is of 18.5 percent of the GDP in terms of shadow economy.

A remedy to the growing shadow economies in some countries are electronic payments, according to AT Kearney. Countries with high level of electronic payments, such as the Nordic countries, have smaller shadow economies, while countries where electronic payments levels are minimal, such as Romania, Bulgaria and Greece, have bigger shadow economies.

The full study is here (in English, pdf file).

editor@romania-insider.com