Italy to Shrink Deficit Using Hookers, Cocaine
Illegal activities to be added to GDP
By Rob Quinn, Newser Staff
Posted May 23, 2014 2:08 AM CDT
Updated May 23, 2014 3:52 AM CDT
"Even if the impact is hard to quantify, it's obvious it will have a positive impact on GDP," an Italian economist says.    (AP Photo/Martin Mejia)

(Newser) – Surprisingly enough, this idea didn't come from Silvio Berlusconi: Italy plans to include things like illegal drug sales, prostitution, and cigarette smuggling in its GDP figures for the first time, immediately giving the size of the economy a big boost, Bloomberg reports. Prime Minister Mario Renzi has pledged to cut the country's deficit to 2.6% of GDP, a target that will be a lot easier to hit when illegal sectors of the economy are included.

The European Union's statistical agency has provided guidelines for estimating the contribution of illegal activities to the economy, and the move is expected to add up to 2% to Italy's GDP, ANSA reports. (As for Berlusconi, he's doing community service at a hospice after being convicted of tax fraud.)

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Showing 3 of 12 comments
Eco_101
May 24, 2014 9:55 AM CDT
And coin operated cat houses ??? Viva Vato !
Scott603
May 23, 2014 3:05 PM CDT
Prostitution is already completely legal in Italy, nearly all of Europe, nearly all of South America, Australia, Mexico, New Zealand, etc. In Canada and Japan prostitution is kind of somewhat legal. In the US, prostitution is legal in part of one state.
ballen1133
May 23, 2014 10:17 AM CDT
They can add these bonuses in if they would like but until these enterprises are taxed they mean little to the GDP. Prostitution and drug trade, while generating huge sums of money for the people in the position of raking it in, does little to benefit the economy unless we have the magic words of "tax the hell out of these businesses."