ZAGREB, April 8 (Hina) - Grey economy, or the unreported activities, accounts for 10-30 percent of Croatia's Gross Domestic Product (GDP), and has a declining tendency, according to two studies presented in Zagreb on Monday.
ZAGREB, April 8 (Hina) - Grey economy, or the unreported
activities, accounts for 10-30 percent of Croatia's Gross Domestic
Product (GDP), and has a declining tendency, according to two
studies presented in Zagreb on Monday. #L#
The two studies, conducted by the Central Bureau of Statistics, the
Economic Institute, and the Institute for Public Finances, provide
different results as to the volume of the unofficial economy, due to
the use of different methods.
According to two methods, grey economy accounted for an average 25
percent of GDP in the 1990-5 period and ten percent in the 1996-2000
period. The third method showed a much higher share and a climbing
tendency, with approximately 22-34 percent of GDP in the 1995-9
period, but a decline recorded in 2000.
According to the classification used by Eurostat, the statistical
office of the European communities, grey economy accounted for 9.12
percent of the Croatian GDP in 1998 and 8.41 percent in 1999,
amounting to 12.43 billion kuna in 1998 and 11.7 billion in 1999.
The unreported value of production was between one billion and 1.65
billion kuna, the added value of craftsmen was increased by between
560 million and 1.2 billion kuna, the unreported income of renters
was 80 million kuna, and an excess of 42 million kuna was made in
unreported tips.
In 1998 income made from illegal activities was estimated at 708.6
million kuna and at 633 million in 1999. The consumption and
distribution of illegal drugs was estimated at 344.7 million kuna
in 1998 and 389 million in 1999. The unreported income from
prostitution was estimated at 271.4 million kuna in 1998 and at
290.6 million in 1999. Considerable income was made from the
illegal trade in audio and video recordings and the use of software,
estimated at 3.5-5.2 million kuna annually.
The general conclusion is that black labour is the main cause of two
thirds of grey economy, and that it should be prevented through a
special system of measures as well as institutional reforms.
(EUR1 = 7.4 kuna)
(hina) ha sb