According to the Statistics Office of Georgia, the shadow economy, or more accurately, the non-observed economy, represents 13.6% of the overall economy as of the second quarter of 2025, which marks a decrease of 0.1 percentage points compared to the same period last year.
The non-observed economy (NOE) includes all economic activities not captured in regular statistical data, such as those provided by unregistered or informal suppliers, or those hidden to evade taxes and regulations . Examples include hiring individuals for repair work without a formal contract, tutoring services, and the retail sale of goods produced by small farmers, among other activities that are not registered.
Statistics show that in 2010 the share of non-observed economy was 23.1% of GDP, in 2015 it fell to 13.6%, after which it fluctuated between 12-13%.
As of Q2 2025, the share of non-observed activities is highest in the «other services» sector and amounts to 72.2% of GDP. This sector includes all services not belonging to other sectors of the economy. Followed by accommodation, which includes both hotel services and short-term rental apartments etc. Non-observed economy accounts for 51.6% of the sector’s turnover. In the third place are health services, which account for 19.2% of GDP. This includes unregistered services of doctors and other services.
