Taking into Account the Income from Drugs, Sex and Alcohol could Increase Growth

Some of the governments in Europe are considering drugs, prostitution, and contraband as likely means to boost their economic growth report as they fight back their debt crises.

Last month Italy with its announcement that it would start including the revenues from the sex trade as well as drug trafficking and contraband alcohol and tobacco, to improve its gross domestic product (GDP) from the year ahead, caused quite a stir. People were opposing the latest plans of the authorities, which could lead to more trouble for public health.

If the authorities of EU authorities accept the idea than one of the effects would be reduced public deficit as a ratio of output, which in fact would be a great help for countries which are making an effort to bring their public deficit levels lower than the EU ceiling specifications of 3.0 percent of output.

Italy's central bank in 2012 approximated the worth of the criminal economy at 10.9 percent of GDP. If these figures were included, it is likely to increase the growth of the country to move beyond the 1.3 percent estimate of the government.

Britain said last month that the inclusion of illegal activities like prostitution and drugs in the national accounts could put an additional 10 billion pounds to the GDP which is equal to around one percent of the national output.

Eurostat, European Union's statistical institute recommended the implementation of using the unprofessed or so-called black economy to calculate national statistics as part of a series of changes from September. Eurostat says that inclusion of such data will permit a superior comparison among countries which have different set of laws.


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