(messenger.ge) - The Department of Statistics in cooperation with the UNDP signed an eight month project agreement on November 8 to gain an accurate picture of the size and scope of the Georgian shadow economy, reports Trend.
"It is a very important project for our department. It will enable us to make accurate estimates of the macro-economic indicators in our national reports," Irakli Siradze, the chair of the Department of Statistics, stated at a press conference on November 8.
The project "Capacity Building for the Department of Statistics for Obtaining Accurate Estimates of the Informal Economy" will provide support to better measure the size and scope of the shadow economy using at least two internationally acknowledged methodologies, as well as conduct surveys in sectors of the economy.
However which sectors of the economy will be surveyed has not been decided. As Siradze noted, that will be decided during the working process. "There are a number of methodologies, and we, with our international partners, will decide which methodologies to use," he said.
The project will also create an Analytical and Policy Recommendation Report, offering specific recommendations to policy makers about how to encourage the transition of informal workers into the formal economy.
"The UNDP places high importance on strengthening the statistical capacity of Georgia, which in turn is the basis for informed decision-making. We hope that accurate information about the size and root causes of the informal economy will help the government create effective interventions to integrate the informal sector into the formal economy creating a basis for long-term economic growth," Peter Van Ruysseveldt, UNDP resident representative, stated on Wednesday.
Currently, the country's shadow economy is estimated to be much smaller, at 22 percent, than during former president Shevardnadze's time, when it was estimated to be a massive 60 percent.
"Each sector has different indicators, we, along with the international experts, plan to look at these indicators and determine how accurate these indicators are by using new methodologies," Siradze told The Messenger.
The size of the project funded by the UNDP is USD 122 500.
After completion of the project, the Department of Statistics will present the final results of the surveys.