This Country Will Include Drugs, Prostitution In GDP Calculation

| by Sarah Fruchtnicht

Italy plans to include revenue from drug trafficking and prostitution to calculate its gross domestic product next year.

Italy’s statistics agency, Istat, announced it will also include revenue from illegal tobacco and alcohol sales, although it would be “very difficult for the obvious reason that these illegal activities are not reported.”

“The concept of what is illegal activity is also open to different interpretations,” Istat said Thursday in a statement.

Italy is seeking to boost its economic results, in accordance with new European Union rules on indebtedness. The government estimates a 1.3 percent growth without taking into account its criminal economy, which the Bank of Italy estimated at 10.9 percent of GDP in 2012.

Other countries in the European Union believe Italy is making a mockery of the new rules, which keep deficits and debt under control, according to Businessweek.

If, however, Italy gets away with this GDP calculation, other countries in the EU make want to do the same.

Sources: AFP, Businessweek