Belgium’s black economy amounts to €61 billion

Belgian media report that the black economy in Belgium accounts for nearly €61 billion, or about 16.1% of Gross Domestic Product (GDP), according to a report by economics professor Friedrich Schneider, titled ‘Shadow economy and tax evasion in the EU’.

By shadow economy, Schneider refers to the hidden segment of a country's economy that operates on numerous unreported private cash transactions. According to Schneider’s report, Belgium’s shadow economy is larger than that of neighbouring countries. In the Netherlands, for example, the black market accounts for about 9% of GDP, while that number is 13.3% in Germany, and 10.8% in France.

But the report also shows that Belgium is making progress in the fight against the black market. In 2009, it accounted for as much as 17.8% of GDP.