Investors urge more action on shadow economy

Take note – story published 7 years ago

The Foreign Investors' Council in Latvia (FICIL) on Thursday unveiled its latest report on the size of the shadow economy in Latvia, along with an appeal to government to do more to improve investor confidence by tackling tax-dodgers and backhand payments.

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.

Girts Greiskalns of FICIL
00:00 / 04:29

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.

Dr Arnis Sauka of SSE
00:00 / 03:31

A presentation of the main findings produced by KPMG is available HERE

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