COMPARATIVE ANALYSIS OF THE INCLUSION OF THE NOE IN GDP – EU AND SERBIA

Abstract

This paper presents new evidence and systematize the already known facts support the conclusion that Serbian GDP level is underestimated because of the phenomenon of non-exhaustiveness. Exhaustiveness is a euphemism for non-observed economy (NOE), incomplete coverage and is focused primarily on the gray economy. Nominal upward correction of GDP would imply a dramatic change in domestic economic policy, primarily in the area of further fiscal restriction. Therefore, the conclusions that reflect the quantification of any audit procedure requires time and resources for its implementation were not considered. The shadow economy is an integral part of our lives and there is no legitimate reason why they missed, even if some segments, from the calculation of GDP, as is the case today with Serbia. It is this and in accordance with the recommendations of international institutions and the EU claim that at the beginning of the last decade has imposed the obligation of the new States to engage in official GDP and correction of the gray economy.