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About 40% of Serbian Economic Activity Unreported, Novosti Says

About 40 percent of Serbian trade in goods and services is not reported to the government, Vecernje Novosti reported, citing the head of the national Association of Small and Medium-Size Enterprises.

The grey economy translates into 500 million euros ($667 million) in lost taxes and other revenue for the state, Milan Knezevic said, according to the newspaper. An estimated 800,000 workers in the country of 7.3 million receive cash wages that are reported as their employers try to avoid paying related employee costs, the newspaper reported.

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