Sofia, July 13 (BTA) - The share of grey economy in Bulgaria was 25.22 per cent in 2017, down by 3.07 per cent compared to 2016, according to data based on the Business to the Rules composite index of the Bulgarian Industrial Capital Association (BICA). This recorded 71.71 per cent of legal business in 2016, which rose to 74.78 per cent in 2017.

The data were presented Friday by Stefan Petranov, the head of the team which generated the index, and BICA Chairman of the Board Vassil Velev.

Velev said that when the survey began in 2010, the share of the grey economy was 35 per cent.

Considerable portions of the grey sector were recorded in the areas of tourism, construction, agriculture, trade and services, unlike machine building, electronics, energy, electrical engineering and metallurgy.

The larger the enterprise, the less probability for grey practices exist. The same is valid for incomes: the more a sector provides higher profit and remuneration, the less grey practices are established, Velev said.

The analysis shows that the positive downward trend in the share of grey economy is the result of the financial and economic stability, the measures for improving the business environment and world economy growth, which reflects on increasing export volumes. The lack of workforce and of reforms in key sectors, such as healthcare, protection of competition, justice, home affairs and security, as well as the new administrative raise of the minimum salary are among the reasons stalling the positive trends in the change of the index. World trade conflicts, the looming trends for Europe at two speeds and the continuing EU sanctions against Russia also contribute to this trend.

According to Petranov, if the trend of 2010-2017 continues, in five years the share of grey economy will reach 13 per cent and the Business to the Rules index will reach 87 points. He pointed out that the share of the grey sector in the EU is currently approximately as much, between 13 and 15 per cent. He expects Bulgaria's approach to the Euro zone to lead to an increasing share of business to the rules.