Countries with the world’s biggest informal economies

Source: Visual Capitalist and E&Y Images: Shutterstock [{ "selector": ".oxogi-a", "duration": "500ms", "fill": "forwards", "delay": "750ms", "keyframes": [ {"offset": 0, "opacity": 0, "visibility" :"visible"}, {"offset": 1, "opacity": "1", "visibility" :"visible"} ] }, { "selector": ".ailut-a", "duration": "500ms", "fill": "forwards", "delay": "500ms", "keyframes": [ {"offset": 0, "opacity": 0, "visibility" :"visible"}, {"offset": 1, "opacity": "1", "visibility" :"visible"} ] }]

The informal or shadow economy refers to economic activity that is outside the ambit of tax and government regulation. This includes informal workers as well as illegal activities.

The shadow economy accounted for 11.8% of the world’s GDP in 2023, according to an E&Y report. For over half the countries, it represents more than 19% of their GDP.

Here are the ten countries with the largest shadow economies and their size as a percentage of the country’s GDP as of 2023.

10. France

Shadow economy: $205 billion Percentage of GDP: 6.7%

9. Russia

Shadow economy: $265 billion Percentage of GDP: 13.1%

8. Japan

Shadow economy: $282 billion Percentage of GDP: 6.7%

7. Germany

Shadow economy: $308 billion Percentage of GDP: 6.8%

6. Mexico

Shadow economy: $320 billion Percentage of GDP: 17.9%

5. Indonesia

Shadow economy: $326 billion Percentage of GDP: 23.8%

4. Brazil

Shadow economy: $448 billion Percentage of GDP: 20.6%

3. India

Shadow economy: $931 billion Percentage of GDP: 26.1%

2. USA

Shadow economy: $1.4 trillion Percentage of GDP: 5%

1. China

Shadow economy: $3.6 trillion Percentage of GDP: 20.3%

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