economy

April 28, 2026

Zero Tolerance for the Grey Economy

The National Alliance for Local Economic Development (NALED) recently held the first meeting of its expert group on the grey economy, marking a new chapter in the fight against one of the most persistent problems of the domestic economy. This meeting was not just a formality but the start of work on an ambitious Program to Combat the Grey Economy for 2026-2030, with clearly defined priorities and the inclusion of all key stakeholders: from ministries and institutions to the economy itself. From the outset, the message was clear – the focus is shifting from declarative initiatives to operational measures for more efficient institutional work, as well as identifying regulations that need improvement. Key areas include better coordination of state bodies, accelerated digitalization, even the use of artificial intelligence, and a more decisive fight against undeclared work and the increasingly present grey zone in online trade. Special emphasis remains on preventive measures, raising awareness, strengthening inter-institutional cooperation, and partnership between the state, economy, and citizens, announced Jelena Mićić, lead advisor for competitiveness at NALED, for 'Politika'.

Zero Tolerance for the Grey Economy

TL;DR

  • Serbia is launching a new program to combat the grey economy from 2026-2030, involving ministries, institutions, and the economy.
  • The focus is shifting to operational measures, digitalization, artificial intelligence, and tackling undeclared work and online grey zones.
  • 80% of citizens view informal business negatively, but awareness and financial/digital literacy need further improvement.
  • Construction, crafts, trade, and hospitality are the most vulnerable sectors to the grey economy.
  • The grey economy was 21.1% of Serbia's GDP in 2023, with a recent increase after a decline.
  • Key drivers for the grey economy include avoiding taxes, contributions, and other state obligations, alongside economic instability.
  • Digitalization efforts like e-invoicing and e-fiscalization have shown measurable positive effects on tax revenues and formalization.
  • Serbia is making progress in fighting the informal economy but has not yet reached the EU average in related instruments.

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