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Shadow economy accounts for 17 percent of Jordan's GDP

Staff Writer | July 16, 2018
The shadow economy in Jordan accounted for 17.38 percent of the GDP between 1991 and 2015, according to the International Monetary Fund (IMF).
Middle East   The real volume of the shadow economy might be even higher
In a paper titled "Shadow Economies around the World", the IMF showed that the Kingdom's shadow economy's part in the GDP ranged between 13.44 and 21.12 percent during the 20 years targeted in the study, the report said, as cited by the Jordan News Agency, Petra.

The paper, which covered 158 countries, also showed that the ratio of the informal economy to the GDP took a downtrend starting from 2004.

However, the real volume of the shadow economy might be higher than that shown in the study in some countries like Jordan, Lebanon and Turkey as the impact of hosting refugees was not measured.

At the Arab countries level, the study indicated that the shadow economy in Qatar reached 15.93 percent, 16.56 in Saudi Arabia and 19.58 in Syria. The ratio was found to be significantly higher in Egypt (34.24 percent), Morocco (34.1 percent), Lebanon (31.58 percent), Algeria (30.86 percent) and the UAE, where it reached 26.54 percent in the same time span.

The global average reached 31.9 percent, with the country having the smallest ratio being Switzerland, with 7.2 percent of the GDP, followed by Austria (8.9 percent), the study indicated.

The highest ratio in the world was recorded in Bolivia (62.3 percent) and Zimbabwe (60.6).