NSI: From 1 October 2014, in GDP there will be estimates of hidden economic activities

Sofia, June 12, 2014

Estimates of hidden activities such as prostitution, smuggling and distribution of drugs will be included in the calculation of gross domestic product (GDP) and gross national income (GNI) of Bulgaria. The changes will take effect from 1 October this year, when introducing the so-called European System of Accounts 2010. According to the newly elected President of the NSI Sergey Tsvetarsky the new methodology should replace the current system, which takes into account key macroeconomic indicators to align practices in the EU member states.

At a press conference today the President of the NSI identified as priorities in his work the increase the effectiveness of the institution and the introduction of more electronic services to facilitate consumers of information and respondents who provide statistical data.

The National Statistical Institute will not collect primary information on smuggling, drug trafficking or prostitution, and will evaluate them according to data that are officially known, or which can indirectly provide information about the volume and impact on GDP. Diana Yancheva - Vice President of the NSI, explained that the data will be taken from official sources - Police, NRA, Europol, Interpol, etc. According to her the task of the NSI will be to delineate the boundaries within which a given phenomenon develops.

Data for the hidden economic activities will be implemented in stages across time series since 1995. Their inclusion in the official statistics will bring an increase of the level of GDP, but it is still early to predict exactly how much.

Other significant changes that new methodology will bring after its implementation are indicators of gross capital formation, government expenditure and others.

In order to have comparability of data, the new methodology will be synchronized in all countries - members of the European Union and by the end of the year it is expected that Eurostat will announce the progress of the procedure.

For more information: Tatyana Vasileva, 0887 51 22 70.