site.btaShare of Underground Economy in Bulgaria Remains High

The processes of putting Bulgaria’s economy into the light have been brought to a halt and the underground economy’s share in this country remains high, according to a Bulgarian Industrial Capital Association (BICA) study on the processes of the informal economy both in Bulgaria and at the European level, based on figures from the Economy in the Light composite index and the Employment in the Light sub-index. On Thursday, the first open meeting of the Economy in the Light Public Council took place.

The main reasons for the high share of the underground economy are: the incomplete reporting of output and VAT collection; the lack of real competition in public procurements; contracts that do not reflect the actual amount of the workers’ wages; missing receipts for sales of services; and additional work activities without contracts.

For 2023, the Economy in the Light composite index stood at 78.00, while in 2022, it was 78.58. In 2023, the Employment in the Light sub-index stood at 82.24, compared to 81.69 in 2022.

In 2021, the Economy in the Light index notched up 78.40, and the Employment in the Light sub-index stood at 82.08.