How “shadow” is Georgia’s economy - IMF’s answer
According to IMF’s estimation, the share of shadow economy in GDP of Georgia is within the limits of 10%, - Mercedes Vera-Martin, Head of International Monetary Fund mission told Forbes. According to her, these data do not include the share of so-called informal economy. IMF relates the survey results, published on its web site, to this very informal economy, according to which results the share of shadow economy in Georgia is one of the highest in the world.
“To measure shadow economy, different organizations use different methodologies. We mainly lean upon the country’s official data, possessed by Statistics Service. According to 2015 data, the share of shadow economy in Georgia is within the limits of 10%, however, I should mention that it does not include the share of informal economy. For instance, we know that in the countryside of Georgia many people produce food and other goods. On IMF’s web page the so-called special survey results were published, which do not coincide with our data and position. This survey measures informal economy share as well”, - states Mercedes Vera-Martin.
The Head of the Mission notes that in the recent years, Georgia has made a big progress with regard to tax mobilization.
“The share of tax incomes in GDP is approximately 20-25%, which is quite a high rate, if compared to other countries. However, this rate can be improved and we know that the government is working on simplification of tax administration, which will make tax mobilization easier,” – says Mercedes Vera-Martin.