The shadow economy, also known as the underground, black market, or informal economy, includes all economic activity hidden from government oversight, often to avoid taxes or regulation. This broad category spans everything from illicit trades to untaxed household services. The European Union and other global powers are increasingly concerned, given its impact on GDP, tax revenue, and legal markets. Understanding the scope and dynamics of the shadow economy is essential to shaping better policies and enforcement.
Click on to explore this invisible economic force in depth.