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Romania's underground economy at EUR 39.6 bln this year
Romania's underground economy is estimated at 39.6 billion euros in 2013, more than 3.5 percent less than in 2008 and almost 15 percent down from the 2003 level, reads a Visa Europe report sent Wednesday.
Despite that, Romania is still second in Europe by the GDP share of underground economy, which is estimated at 28 percent this year, the same as in Croatia, Estonia and Lithuania, with only Bulgaria posting an even higher share of 31 percent, reads the survey published by Visa Europe.
Underground economy had a mixed evolution in Romania since 2008, despite the evident tendency in the past decade to limit this phenomenon, remarks the report titled 'Underground Economy in Europe.' The global economic crisis sent the economy plunging in 2009 and triggered a sudden increase in unemployment, while underground economy slightly gained ground in absolute terms between 2010 and 2013 as a result of austerity measures and the persisting public perception that corruption goes unpunished. The expansion of underground economy was restricted by the development of electronic payments.
Romania's GDP, expressed in euro, will revert this year to the value registered in 2008, while the underground economy will shrink by 1.5 billion euros during this period, according to estimates included in the Visa Europe report.
'Electronic payment systems clearly help reduce underground economy. Romania is lagging far behind the EU average of 180 electronic transactions (bank transfers and direct debit and card operations) per capita, with just 16 such electronic transactions a year. Reducing cash circulation could be an effective tool to combat underground economy,' said Catalin Cretu, Romania country manager, Visa Europe.