Underground Economy - Evolutions and Trends in Romania

Romania is one of the countries where the underground economy is more manifested than in developed countries. The extent of the underground economy and informal employment in Romania has taken alarming proportions, which can threaten the macroeconomic and macro social balance. The unstable political climate, the low living standards, the high taxes are just some of the most eloquent reasons that can support the statement above. A high scale of the underground economy has as the main negative effects the decrease of the growth rate for the official economy. Thus, increasing the share of the underground economy in the economic activity in a fast pace requires due consideration of the phenomenon and seeking measures for its mitigation. Our paper shows the importance of the phenomenon by analysing certain aspects related to the current trends of the underground economy in Romania.