Illegal economy nearly halved

The illegal economy recorded a significant decline in Greece from 2013 to 2021, excluding the year of the pandemic in 2020, according to a report by researchers at the International Monetary Fund.

According to the report, the shadow economy strengthened at the height of the debt crisis, reaching 30% of gross domestic product in 2013. The increase is attributed to the severe recession, the deterioration of tax incentives and the further weakening of the payment culture. From these levels, the shadow economy fell to 16% of GDP in 2021.

There are also significant regional variations in the reduction of the shadow economy, ranging from 5% of (local) GDP in Western Macedonia, to 18% of GDP in Crete. More generally, the decrease is greater in Attica and the islands, and smaller in more remote parts of the mainland.

According to the International Monetary Fund...