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Visa Europe says value of Hungary's hidden economy higher-than-average 24% of GDP

Visa Europe estimates that the annual value of Hungary's hidden economy is EUR 22 billion, or 24% of GDP, compared to an average value of 20% of GDP throughout Europe, Visa Europe's newly published report shows.

Visa Europe said that two-thirds of the value of the hidden economy stems from unregistered labor, while the remaining third arises from tax evasion.

The company reported that Hungary's hidden economy, as in other countries in Europe, is particularly active in the following sectors: construction, retail, manufacturing, tourism, personal services and agriculture.

Visa Europe said that among European countries the hidden economy is least active in Switzerland and Austria, at 8% of annual GDP.

The company attributed Hungary's relatively large hidden economy to "a lack of confidence in government and a complicated tax system."