Romania has highest share of underground economy in EU at 13.1%, EY says

Romania's underground economy reached 13.1% of GDP in 2023, the highest level among European Union member states, Ziarul Financiar reported on June 20, citing data from consultancy firm EY.

Despite this leading position within the EU, the figure marks a significant improvement compared to previous decades. In 2000, Romania's underground economy accounted for 31.3% of GDP, according to EY estimates. In 2013, the share had dropped to 19.5%, and in 2019 it had reached 15.1%.

The latest data highlights Romania's lag in tackling informal economic activity compared to regional peers. In the Central and Eastern European region, all EU member states except Bulgaria reported underground economy shares below 10%. The Czech Republic recorded one of the lowest shares in the EU at 6.5% of GDP.

The findings come amid intensifying debate in Bucharest over measures to reduce the country's record budget deficit. Several political leaders and economic analysts have cautioned that additional tax increases—currently being considered as part of a wider fiscal consolidation plan—could drive more activity into the informal sector.

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