Black market comes to the rescue: Cocaine sales, prostitution to boost Italian GDP figures

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.

Black market comes to the rescue: Cocaine sales, prostitution to boost Italian GDP figures 1400787690477.jpg-620x349

Black market comes to the rescue: Cocaine sales, prostitution to boost Italian GDP figures 1400787690477.jpg-620x349

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 on Thursday. The revision was made to comply with European Union rules, it said.

Mr Renzi, 39, is committed to narrowing Italy's deficit to 2.6 percent of GDP this year, a task that's easier if output is boosted by portions of the underground economy that previously went uncounted. Four recessions in the last 13 years left Italy's GDP at €1.56 trillion (US$2.13 trillion) last year, 2 per cent lower than in 2001 after adjusting for inflation.

"Even if the impact is hard to quantify, it's obvious it will have a positive impact on GDP," said Giuseppe Di Taranto, economist and professor of financial history at Rome's Luiss University. "Therefore Renzi will have a greater margin this year to spend" without breaching the deficit limit, he said.

http://www.smh.com.au/world/cocaine-sales-prostitution-to-boost-italian-gdp-figures-20140523-zrllr.html

Black market comes to the rescue: Cocaine sales, prostitution to boost Italian GDP figures

Black market comes to the rescue: Cocaine sales, prostitution to boost Italian GDP figures

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