GDP makes some €50 bln from black market labor

Sursa: Standard.ro | Publicat: 31 mar 2008, 15:26

Some one third of Romania’s gross domestic product (GDP) comes from black market labor, according to an estimate by representatives of the National Council for Small and Medium-Sized Enterprises (CNIPMM).

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The 30-35 percent from black market labor in Romania greatly exceeds such values in other European Union (EU) states. It is estimated that black market labor yields some 20 percent of GDP throughout the EU. CNIPMM added that is presently working on a package of legislative measures to diminish the ratio of underground economy.

The Romanian National Prognosis Commission (CNP) estimates that GDP will reach some RON 475 bln (€127 bln), which means that black market labor contributes RON 160 bln (€45 bln).

The President of CNIPMM, Ovidiu Nicolescu, said that black labor is particularly widespread among four social categories: students, freelancers, unemployed, and immigrants. He added that the major motivation for this phenomenon is taxes and administrative pressures.

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