ArmInfo. Armenian share in shadow economy in 2016 was 29.8%, and the volume - $ 3.1 billion with an annual decline of 11.6%. This is evidenced by the research of the Caucasus Institute, published in the May 25 book by political scientist Hrant Mikaelyan "Shadow Economy in Armenia".
According to the expert, shadow economy throughout the period of Armenian independence was pretty widespread, and at certain times even surpassed the formal economy in size. Thus, according to his estimates, the highest indicator of shadow was recorded in 1997 - 66.7%, after which the reduction from 2004-2013 was observed - from 50.4% to 40.5%, with the subsequent continuation of the decline to 29.8% % in 2016.
In this regard, Mikaelyan noted that there are a number of conditions favorable for the shadow economy in Armenia, in particular the youth of state institutions, poverty of the population, low salaries, limited competition due to objective and subjective reasons, high unemployment, as well as property stratification.
The expert sees the solution of the problem as a result of the continuation of institutional development. "It is not the most effective way to reduce the shadow, it is not the most effective way to reduce the shade, it is possible to cut firewood, since the shadow economy balances the current situation and is conditioned by the objective development of economic and economic relations in society and the state rooted in the socialist past," he said.
To note,The Shadow Economy in Armenia book used sociological methods of data collection, used the political theory of abnormality as a phenomenon at the junction of politics and economy, and analyzed the shadow economy as a macroeconomic phenomenon. The book will help readers to see the features and patterns of the formation of a shadow economy in Armenia, and practitioners to develop measures aimed at reducing it. The study was conducted at the Caucasus Institute with the support of the Swiss Academic Network of the Caucasus (ASCN) in the framework of the study of informal economy and politics in Armenia.