Italy shadow economy reaches 218 billion euros in 2024

Italy’s shadow economy reached a value of 218.2 billion euros in 2024, according to data from Istat. This figure represents approximately 9.9% of the nation's Gross Domestic Product (GDP). While the absolute value of the unobserved economy increased by 0.3% compared to 2023, its share of the total GDP decreased from 10.2% to 9.9% because the overall economy grew at a faster rate of 3.2%.

The unobserved economy includes both the shadow economy and illegal activities. The shadow economy, comprising undeclared income and irregular employment, was valued at 198.4 billion euros. Illegal activities accounted for 19.8 billion euros, a decrease from the previous year.

A significant trend is the rise in irregular employment. The number of irregular full-time equivalent work units rose by 4.6% to 3.277 million, an increase of more than 145,000 units compared to 2023. Within this group, irregular employment among employees increased by 5.4%, while irregular work among the self-employed rose by 2.7%. This growth in undeclared labor impacts tax revenues, social security contributions, and fair competition.