Greece’s shadow economy is 21.5% of GDP, says German IAW

31 August 2017
1113 Views

Some countries have much larger shadow or unofficial economies than others. Greece’s shadow economy is worth over a fifth of its total output, and Italy’s isn’t far behind, says a research by German IAW. However, the chart refers only to selected industrialized countries. And Germany is not doing much better…

Shadow Economy is illicit economic activity existing alongside a country’s official economy, e.g. black market transactions and undeclared work.
This chart, based on research by Germany’s Institute for Applied Economic Research (IAW) at the University of Tübingen, shows southern European countries dominating the top of a list of selected industrialized countries with shadow economies.

What is the shadow economy?
It is the total value of transactions by businesses and individuals that occurs “off the books”. In other words, work done for cash to avoid incurring tax and without following standard business practices.

This could be anything from paying a tradesman or a babysitter in undeclared cash to the illegal wildlife trade, counterfeiting and money laundering.
Untaxed and unrecorded economic activity boomed during the global financial crisis and continues to grow today.

The World Economic Forum’s Global Agenda Council on Illicit Trade 2012-2014 estimated the global shadow economy to be worth $650 billion. While it’s difficult to be sure of the amount of business that bypasses regulators, WEF research from 2015 forecast that the cost to the global economy of counterfeiting alone could reach $1.77 trillion over the course of that year.

A large shadow economy is a cause for concern for governments that miss out on tax revenues. However, it has also been argued that attempting to curb the shadow economy can limit economic growth and hamper innovation. via WorldEconomicForum.

PS. What? Shadow economy in Germany is 10.4% of GDP? Not bad, if one considers Berlin has been trying to teach Greece law and economic order.

You may be interested

Two Greek islands in best-hidden of the Mediterranean: Telegraph
GREECE
shares40 views
GREECE
shares40 views

Two Greek islands in best-hidden of the Mediterranean: Telegraph

Panos - Jun 18, 2021

British media outlet Telegraph included the Greek islands of Karpathos and Alonissos in its top 20 holiday destinations in the…

Coronavirus Greece: 519 new cases, 321 intubated, 16 deaths
GREECE
shares44 views
GREECE
shares44 views

Coronavirus Greece: 519 new cases, 321 intubated, 16 deaths

Panos - Jun 18, 2021

Greece announced that the new laboratory-confirmed cases of coronavirus recorded in the last 24 hours are 519, of which 2…

Greece: Caroline was murdered by her husband!
GREECE
shares29 views
GREECE
shares29 views

Greece: Caroline was murdered by her husband!

Panos - Jun 18, 2021

Charalambos Anagnostopoulos, the husband of 20-year-old Caroline Krauts, is according to the information available to the police her killer. The…

Leave a Comment

Your email address will not be published.