THE IMPACT OF THE SHADOW ECONOMY ON THE NATIONAL ECONOMY AND ITS PREVENTION

One of the key factors hindering the economic development of many countries, particularly developing states, today is the shadow economy. Informal employment, which is considered one of the sectors of the hidden economy, negatively affects not only the state’s economy but also the well-being of the population. This article discusses the impact of informal employment primarily on the economy, as well as proposals for reducing the share of this sector in employment and its legalization, based on international experiences