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The so-called unseen economy, which excludes official statistics and consists of undeclared work and illicit activities, is worth €217.5 billion, or 10.2% of GDP. In other terms, over one in ten euros that are produced in Italy does not pass through conventional channels. This figure—the most recent ISTAT update is from 2023—is 7.5% more than the €202.4 billion reported in 2022. Within this boundary, two worlds exist. The first is the "legal" underground economy, which includes pubs, restaurants, shops, artisans, family services, and construction sites where part of the income or working hours is not recorded. This is where practically the entire phenomenon is concentrated: €197.6 billion, a €14.9 billion increase over the previous year. The second largest sector—drugs, prostitution, and tobacco smuggling—is worth €19.9 billion, up 1% from 2023. In other words, the rise in the "undeclared" sector stems not from illicit markets, but from tax avoidance in the mainstream economy. The sector with the largest impact on the underground economy is "personal services", with the undeclared sector accounting for 32.4% of total value. This includes domestic workers such as babysitters and caregivers, as well as beauticians, hairdressers, cobblers, watch repairers, and appliance technicians. The macro-sector "trade, transport, accommodation, and catering" follows with 18.8%. The construction sector follows closely after, accounting for 16.5%.
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