Italy is no longer in an economic recession apparently thanks to new rules stating that revenue from illegal activities can be factored into its Gross Domestic Product (GDP).
According to RT, the European Union now calculates the GDPs of its members by including money that comes from black market businesses like drugs and prostitution.
Italy’s office for national statistics said last May that as of October 2014, revenue from “drug trafficking, prostitution and smuggling services” would be counted among the otherwise legal and taxed sources.
In Italy’s first quarter, the 0.1 percent decline ended up rising to break even.
The GDP fell again in the second quarter, dropping 0.2 percent, but for a country to be officially declared in an economic recession, the GDP must decrease for two consecutive quarters.
Going forward, though, RT reports that these highly lucrative industries could increase the country’s GDP by up to 2 percent.
Black market revenues could also reduce Italy’s ratio of GDP to debt, which is currently more than twice the considerably low debt ceiling issued by the European Union.
This marks the third time Italy has narrowly avoided recession over the past six years, the hardships largely due to difficulty fostering economic reform under the EU’s debt restrictions.
via RT, Photo Courtesy: Tumblr