Greece's shadow economy is estimated at 45-60 billion euros – 20.9% of the country's GDP

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The fight against tax evasion, despite significant steps taken over the past four years, remains a serious problem for the Greek economy and a constraint. a factor in its growth, since it directly affects investment.

This issue continues to occupy a central place in the priorities of the government's economic headquarters, despite many years of efforts by the authorities.

In 2023, the share of the shadow economy is estimated by the Bank of Greece at 20.9% of GDP. With a GDP in 2023 of 220.3 billion euros, which is 6.6% more than in 2022, the volume of the shadow economy is 45-46 billion euros, which is higher than the average for EUdespite the biggest decline recorded in Europe over the past twenty years. According to other estimates, this figure is even higher – 30% of GDP, that is, about 60 billion euros.

According to the Commission's recent In-Depth Report (IDR) “Greece 2024”, the significant size of the shadow economy is directly linked to the uncertainty of savings, which remain low, well below EU levels, and represent a major obstacle to business investment.

The report also highlights other problems such as high government debt, significant non-performing loans, current account deficit and unemployment.

However, the strong recommendation from the Directorate General of the Economic and Financial Affairs Commission is clear: addressing the structural vulnerabilities associated with low levels of private savings is critical to increasing investment and achieving balanced growth.

In 2017, according to the study Institute for Applied Economic Research at the University of Tübingen (Germany), more than one in five Euro banknotes changing hands in Greece was not registered, and the shadow economy accounted for 21.5% of gross domestic product.

Many years of efforts by the authorities, the introduction of mandatory non-cash payments, the withdrawal of banknotes in denominations of 500 euros and other delights essentially did not yield any results. Perhaps the Greek leadership should look for “shadow capital movements” not in the pockets of ordinary people, but among their own friends, relatives and partners?

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