SSE Riga Shadow Economy Index: The shadow economy in Latvia decreased in 2023 to 22.9% of GDP
On June 12, 2024, the annual results of the SSE Riga "Shadow Economy Index for the Baltic Countries" were announced.
The latest data reveals that the volume of the shadow economy in Latvia decreased in 2023 to 22.9% of GDP, a decrease of 3.6 percentage points compared to 2022. In Estonia, there was a slight reduction in the shadow economy for 2023, now at 17.9% of GDP, down from 18.0% in 2022. In contrast, Lithuania saw an increase in its shadow economy in 2023, rising by 0.6 percentage points compared to 2022, reaching 26.4% of GDP.
In 2023, the shadow economy in Latvia decreased by more than three percentage points, breaking the negative trend of the last few years. According to Arnis Sauka: "This is the first time since we began studying the size of the shadow economy in 2009 that we have overtaken Lithuania. In other words, our shadow economy is now smaller than Lithuania’s. Estonia is still slightly ahead of us, but the gap is not very significant. Overall, this trend is positive.”
The video recording from June 12, 2024, of the annual SSE Riga "Shadow Economy Index in the Baltic States" presentation, followed by a discussion among politicians, state institution representatives, and entrepreneurs, is posted below. The event was organized in cooperation with the Latvian Chamber of Commerce and Industry (LCCI).