With the shadow economy accounting for 28% of GDP, Romania is on a par with Croatia, Estonia and Lithuania and only second after Bulgaria, whose unreported economy has the biggest share of 31% of GDP, according to a study published by Visa Europe. The shadow economy in Romania amounts to €40 billion, which is a 3.5% reduction on 2008. It fell by 15% in the last decade, due to the increase in electronic payments, the global financial crisis and the preparation for EU accession. According to Catalin Cretu, country manager of Visa Europe in Romania, the electronic payments system clearly supports the reduction of the shadow economy. A reduction the circulation of cash can serve as an efficient tool in combating the shadow economy, Business Review cited Cretu as saying in an interview.
