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Greece The Underground Economy
Sources: The Library of Congress Country Studies; CIA World Factbook
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    Multiple occupations are linked to the growth of an underground economy in Greece. As in many other national economies since the 1970s, Greece's underground economy includes a variety of economic activities outside the reporting and taxation systems of national government. In a country such as Greece, with a large service sector and a multitude of very small enterprises, the proliferation of unreported, untaxed, and unregulated activities is a natural occurrence. Estimates of the Greek underground economy have ranged from 35 to 50 percent of the officially reported economy, meaning that actual incomes and employment exceed official figures by the same percentages. Avoidance of taxes and social security payments has cut the costs of small enterprises and entrepreneurs, whose survival is threatened by economic crisis and international competition. Although the underground economy provides income and employment to otherwise unemployed labor, its operation obstructs the modernization of the country's fiscal system and the development of internationally competitive production capabilities in the economy.

    Data as of December 1994

    NOTE: The information regarding Greece on this page is re-published from The Library of Congress Country Studies and the CIA World Factbook. No claims are made regarding the accuracy of Greece The Underground Economy information contained here. All suggestions for corrections of any errors about Greece The Underground Economy should be addressed to the Library of Congress and the CIA.

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Revised 10-Nov-04
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