underground economy

Economic activity undertaken outside official channels. Transactions in the informal economy are usually illegal, and they are designed to circumvent laws, Regulations, and *taxation. They also tend to be settled in *cash. For obvious reasons, activities in an underground economy are normally excluded from a country’s *Gross Domestic Product statistics. However, attempts at estimating the value of underground economies are frequently attempted. The term "black market" is sometimes used to distinguish *smuggling and *tax evasion activities from other aspects of the underground economy, but the two terms are often used interchangeably.

Auditor's dictionary. 2014.

Look at other dictionaries:

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