Presenting its latest report on the matter, FICIL said promises to reform the State Revenue Service and enforce the law more effectively were needed to tackle the problem, while acknowledging that some important improvements have been made from the times a few years ago when the shadow economy was reckoned to account for a third of GDP.
That level has now fallen to around one fifth of GDP, but Latvia still lags behind Estonia and Lithuania, the latest figures suggest.
FICIL's executive director, Girts Greiskalns, gave an overview of the current situation to LSM.
Meanwhile, diving into the data set was Dr Arnis Sauka of the Stockholm School of Economics in Riga whose work compiling the annual report on the shadow economy has become the most reliable indicator of the phenomenon by far.
A presentation of the main findings produced by KPMG is available HERE.