Infographic Category Business

Shadow Economy In The UK GDP

By | source: Oct 29th, 2014

The Office Of National Statistics in the United Kingdom has recently decided to add the income produced by drugs and prostitution in the calculation of the GDP. For those who don’t know what the GDP is, here is a short description: It is the total value of all goods and services produced in a country, with the addition of all exports, and the difference of the imports. With this new addition of the “shadow economy,” the GDP will grow significantly.

Illegal drugs and prostitution generate a revenue of a whopping 9.7 billion pounds. This is roughly equal to the money brought in by agriculture. This will boost the overall GDP from 1.57 trillion pounds to 1.59 trillion pounds. The things that factor into this equation are many. For example: when it comes to prostitution, brothels, condoms, and sexy clothing are all considered, as well as the rent paid by prostitutes and pimps. Drugs are calculated by sale of specific drugs such as crack cocaine, powder cocaine, amphetamines and heroin.

Adding the “shadow economy” to the GDP will allow the economy of the black market to influence the overall economy. This means that dirty money can actually create a profound visible effect on the nation as a whole, and could possibly influence future GDP procedures around the world. [Via]