Grey economy in Republic of Macedonia

Most analysis show the fact that the GDP of the Republic of Macedonia (RM) would have noted significantly higher amounts and rates of real growth, if the transitional development cycle and the numerous shocks that the Macedonian economy had in the past 18-19 years wouldn’t have caused big structural disorders in the economy, and be extremely manifested in the permanent growth of the number of unemployed people. Those people had to provide their existence in different possible manners, and primarily through inclusion in the different channels of the so – called „grey” economy. There is a wide spread opinion in The Republic of Macedonia that “grey” economy is pretty high. According to some estimations it amounts about 35% of GDP. Such high “grey” economy has a direct influence to the main economic indicators, categories and instruments for macroeconomic regulation: GDP value can not be precisely measured, there are problems in formulating and realization of macroeconomic policy instruments (fiscal policy, monetary policy, social policy, foreign-trade policy) etc. Because of its high value, “grey“ economy is challenging and serious danger for macroeconomic planning and regulation.