HIDDEN ECONOMY

The part of the economy based on clandestine work or illegal activities and consequently not accounted for in national statistics.

In Bulgaria, "as a result of the adoption of a number of measures to improve labor market regulation, in 2003, there was substantial curbing of the hidden economy in its aspects with a bearing on labor relations. However, with the waning of the initial reactions to the steps taken by the government, there has been a certain reversion to the practice of not registering employment relations."
(Vitosha Research Agency, The Hidden Economy in Bulgaria, 2004, visited 2009-07-28)

Hidden economy is the generic term for:

• Informal economy: the production of legal goods and services outside the world of regular, stable and protected employment and legally regulated enterprises.
• Criminal economy: the production of illegal goods and services.
• Parallel economy: the movement of legal goods through illegal or unofficial channels, thus distinguishing it from "informal" productive and small-scale service activities, and criminal or ‘underground' activities.

(adapted from The International Development Research Centre, Informal Integration or Economic Subversion? Parallel Trade in West Africa, visited 2011-05-13)