Due to the cloudy economic points of sale, more and more people are present in this country. The biggest loser is the state.
The recession continues, unemployment is increasing and inflation is still high: in times when it flourishes, the bloom – it should increase again this year, the Linz economist and black work expert Friedrich Schneider explains. With a volume of 40.7 billion euros, the shadow economy will be 8.1 percent of the official economic output this year. Compared to the previous year, this was an increase of 6.5 percent.
Schneider adapted his calculations for 2024 because of the economic slump. According to this, the nominal shadow economy increased by 14.9 percent in the previous year to EUR 38.23 billion, which was 7.8 percent of the official GDP. The increase was somewhat delayed by the abolition of the cold progression. This year the tendency to do without budget -saving measures will probably increase, because the loss of income is at least partially compensated for partially, the economist explains.
There is little in Austria in the EU comparison
The Alpine Republic is still the country in the EU to Luxembourg with the least non -declared work. This is followed by the Netherlands and Ireland. On the other hand, there is much more in Bulgaria, Romania and Croatia, where the volume of non -declared work matters around a third of the official GDP.
The largest share of the shadow economy by around 39 percent in Austria has the construction sector and the traditional companies. The other commercial companies and domestic related services follow with a share of 17 percent.
The majority of the money flows back to the official economy
The biggest loser of non -declared work is the state, taxes and especially the contributions of social security for an amount of 2.0 to 3.5 billion euros per year. However, according to Schneider, the tax losses would be limited because the money that earned in the blunt will immediately be spent 85 percent in the official economy. Another loser is the health insurance policy, which must bear the higher costs due to additional accidents or disability for the work of the Botchers.
On the other hand, the income that earned in De Botte also serves a buffer for the recession, because according to the economist it compensates for part of the loss of income. Many houses would not exist without butter, because few people could pay their house without undesirable work.
If an economic policy measures to combat non -declared work, Schneider suggests the reintroduction of the Crafttsman bonus of 2000 euros per budget and year, as well as a reduction of non -wages.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
