Shadow economy in Greece has hit a high record of 24% of the GDP or approximately around 45 billion euros, according to a relevant research realized by the Institute of Economic Affairs.
According to the survey, Greece ranks 1st among 21 countries, all of which are OECD members examined by the think tank. Italy comes 2nd with 21.6%, while the countries of the European north have showed lower percentages.
The problem, as highlighted by the research, is due to the burden of excessive taxation and contributions, in quality of state institutions and labor laws.
The above reasons have led some 30 million workers in the EU to uninsured employment, resulting in a 20% gross domestic product (GDP) of illegal economic activity in countries such as Spain, Italy and Greece.
In Great Britain the underground economy is around 10% of the national economic output, while at the same time in the Nordic countries the percentage hits a good 14% of the GDP. Moreover, in some south European countries, the grey economy even hits rates between 20% and 30% of the GDP .
Based on the research findings, the shadow economy in Europe has increased significantly in recent years due to soaring taxes that have in turn led to a lack of confidence in governments.
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