Black Economy, Definition(s) of

  • A (36)
  • B (19)
  • C (58)
  • D (26)
  • E (34)
  • F (43)
  • G (20)
  • H (19)
  • I (27)
  • J (11)
  • K (1)
  • L (16)
  • M (27)
  • N (18)
  • O (18)
  • P (33)
  • Q (5)
  • R (30)
  • S (59)
  • T (16)
  • U (4)
  • V (7)
  • W (39)

"If you pay your cleaner or builder in cash, or for some reason neglect to tell the taxman that you were paid for a service rendered, you participate in the black or underground economy. Such transactions do not normally show up in the figures for GDP, so the black economy may mean that a country is much richer than the official data suggest. In the United States and the UK, the black economy adds an estimated 5-10% to GDP; in Italy, it may add 30%. As for Russia, in the late 1990s estimates of the black economy ranged as high as 50% of GDP" (The Economist).

Glossary Source: 

Black economy. (n.d.). In Economics A-Z: Economic terms, topics and jargon. Retrieved October 7, 2009, from http://www.economist.com/research/Economics/alphabetic.cfm?term=black
economy#blackeconomy