February 24, 2014

The gray economy in B&H nominally exceeds 8.6 billion KM and accounts for a third of the gross domestic product /GDP/, which is the highest in Europe.

According to the economists, the impact of the global economic crisis on the poor economy of Bosnia and Herzegovina since 2008 has increased the share of the grey economy on GDP. Namely there are more unregistered firms and more cases of concealment of turnover in registered firms with the aim of reducing tax liabilities.

In Switzerland, Austria, the Netherlands and the UK the grey economy accounts for 10 % of the GDP, in Croatia, Romania, Lithuania and Estonia, 28 %, and in Bulgaria 31 %.