Recent Trends of Informality in Greece: Evidence from Subnational Data

February 20, 2024

Preview Citation

Format: Chicago

Larry Q Cui, and Jiaxiong Yao. Recent Trends of Informality in Greece: Evidence from Subnational Data, (USA: International Monetary Fund, 2024) accessed November 21, 2024

Summary

This paper explores the evolution of informality in Greece as it is widely considered one of the major structural impediments to fiscal capacity and sustainable growth. It finds that informality has dropped significantly in Greece in recent years, although there were temporary increases during the sovereign debt crisis and the COVID-19 pandemic. Lower informality is also found to be associated with higher subsequent per capita GDP growth and higher tax revenue. Moreover, Greece’s significant recent progress in digitalization appears to have helped reduce informality. There remains scope to further reduce informality by accelerating digitalization and the ongoing pro-growth structural reforms.

Subject: Digitalization, Economic sectors, Informal economy, International organization, Labor, Monetary policy, Public employment, Revenue administration, Tax evasion, Technology

Keywords: Digitalization, Evolution of Informality, Greece, Informal economy, Informality, Informality trend, MIMIC model, Public employment, Subnational, Subnational data, Tax evasion, Tax revenue loss, Trends of Informality

Publication Details

Pages:

19
Volume:

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DOI:

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Issue:

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Series:

Selected Issues Paper No. 2024/009
Stock No:

SIPEA2024009
ISBN:

9798400267741
ISSN:

2958-7875

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