Poland's shadow economy to grow to 18.9 percent this year - report

The grey economy's share in Poland's GDP is expected to increase to 18.9 percent in 2022, from 18.3 percent in 2021, according to Poland's Institute of Forecasts and Economic Analyses (IPAG).

IPAG estimates that the total value of the shadow economy in Poland will reach PLN 590 billion (EUR 126.4 billion) in 2022," IPAG said.

In absolute terms, the informal economy will grow by PLN 79 billion (EUR 16.94 billion) this year, the researchers wrote.

According IPAG, the ongoing Russia's war on Ukraine remains a significant factor of uncertainty and may additionally boost the grey economy to 19.4 percent.

"The war will further increase the costs of doing business, which will further encourage enterprises to look for savings in the shadow economy." IPAG said.

In 2017-2020, the average share of the grey economy in Poland was 18.0 percent, according to the report.