Italy Will Start Adding Prostitution and Cocaine To Its GDP Calculations | Exploring Markets

Italy Will Start Adding Prostitution and Cocaine To Its GDP Calculations

Italy has a massive underground economy.

Some reports claim that Italy's underground economy is 15% to 20% of its GDP.

Mafia and racketeering activities are a huge industry in Italy. To some extent, it has become a central aspect of its economy. For hundreds of years it has been home to some of the largest and most prevalent organized crime in the world.

In the past, Italy's economic department has never included any illicit activities into its calculation of GDP. That is all changing today:
"Italy will include prostitution and illegal drug sales in the gross domestic product calculation this year, a boost for its chronically stagnant economy and Prime Minister Matteo Renzi’s effort to meet deficit targets. 
Drugs, prostitution and smuggling will be part of GDP as of 2014 and prior-year figures will be adjusted to reflect the change in methodology, the Istat national statistics office said today. The revision was made to comply with European Union rules, it said." - Cocaine Sales to Boost Italian GDP in Boon for Budget