Shadow Economy in Latvia decreased to 22.9% of GDP in 2023

According to the latest data from the Stockholm School of Economics in Riga (SSE Riga) “Shadow Economy Index for the Baltic Countries,” the share of the shadow economy in Latvia decreased by 3.6 percentage points last year to 22.9% of the gross domestic product (GDP). Meanwhile, in Lithuania, the share of the shadow economy increased in 2023 compared to the previous year, reaching 26.4% of GDP (+0.6%). In Estonia, the volume of the shadow economy in 2023 remained virtually unchanged, comprising 17.9% of GDP (-0.1%).

In 2023, the highest level of the shadow economy in Latvia was in Kurzeme region (24.2%), followed by the Riga region (23.8%), then Latgale (22.7%), Vidzeme (22.2%), and Zemgale with the lowest figure (18%). By sector, the highest share of the shadow economy in Latvia remains in the construction sector at 34.2% (-0.3% compared to 2022).

More information about the Shadow Economy Index study results is available on the SSE Riga homepage.