Underground economy worth $344 bn in Italy

July 13th, 2010 - 10:30 pm ICT by IANS  

Rome, July 13 (IANS/AKI) Italy’s underground economy was worth between 255 and 275 billion euros (about $319-344 billion) in 2008, state-run statistics agency Istat said Tuesday.
That amounted to 16.3 percent to 17.5 percent of the total output for Europe’s fourth-richest country.

The agricultural sector was the largest component of Italy’s undeclared economy, responsible for 32.8 percent of untaxed activities, according to Rome-based Istat.

Around three million people in Italy’s so-called black job market, wages are untaxed and workers receive little or no benefits like pension contributions.

Italy could use the money with public debt in April reaching a record high totalling 1.813 trillion euros and tax revenue falling 1.8 percent in the first four months of 2010 to 104.8 billion euros.

In May, the government lowered its growth forecast from 2.0 percent to 1.5 percent for 2011. The government expects output to grow by one percent in 2010 and by 2.0 percent in 2012.

The economy contracted by 5.1 percent last year amid the worst recession in more than six decades.

–IANS/AKI

snb/vm

Related Stories

Tags: , , , , , , , , , , , , , , , , ,

Posted in Business |

Subscribe