State Statistics Committee of Shadow Economy and Understatement of Revenues

The State Statistics Committee decided on the proportion of the shadow economy in different areas of Azerbaijan's GDP. As the article by the Deputy Chairman of the State Statistics Committee Rauf Salimov says in the scientific journal Statistika Xeberleri, the largest share belongs to the social and other services (3.3%), followed by trade and repair of transport (2.1%), the uncontrolled construction segment accounts for 1, 3%, industry – for 1.1%.

In agriculture, it turns out that the unconsidered economic component is 0.5%, transport and warehousing - 0.4%, tourist accommodation and catering - the same amount (9.1% of total GDP).

According to Turan’s experts, though it is a high rate, it cannot be compared with the actual figures, since according to the State Social Protection Fund, only about 250 thousand entrepreneurs have opened an account in order to attract employees to the compulsory insurance of employees. Overall, individual accounts open for over 3 million workers of the 5 million people of the working age population. This certificates either unemployment among one third of the citizens or unaccounted labor.

Salimov also touched upon the distortion in statistical reports and declarations provided by the companies and organizations - the data are distorted in 6 out of 10 reports, and in the case of small and private enterprises we should talk about 70%.

On average, the actual corporate earnings are underestimated by 29.1% and the cost of wages - by 23.8%. The costs of raw materials are overstated by an average of 14.5%, services - by 16.1%, other expenses - by 6.3%.

According to the responsible official, most revenues are underestimated in trade - by 44.4%, in manufacturing - 25.8%, in transport and agriculture - by 33.8%, in catering and tourism business – 29.4%, and in social and other services - 22.3%. --17D-