Shadow economy - the unnoticed side of the economy

Abstract

The shadow economy represents all forms of unauthorized economic activity, not reflected in official statistics, which cause great harm to society. It includes 3 types of activities: hidden, informal and illegal. The estimate of its dimensions differs from one calculation to another. The hidden nature as well as the heterogeneity of the manifestations requires the use of several evaluation methods, none of which being able to provide a precise estimate of the phenomenon, and no outcome of the evaluation can be accurately verified. The state of the economy in the Republic of Moldova can be characterized as deplorable, which is reflected in the state budget. Legalizing, even partially, the unnoticed economy would allow for a better situation in the domestic economy and an increase in payments in the consolidated budget.