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The U. That's the oft-cited measure of how much a country's economy grows or contracts. Overall, illegal activities are still a small part of the U. The reason for the change is to harmonize economic reporting across the European Union. Prostitution and some drugs are legal in the Netherlands, and the Dutch count those activities in official government statistics.
Since prostitution and many narcotics are still illegal in the United Kingdom, the government is using a combination of police seizures and other data to estimate how much money these activities are adding to the economy. Related: High-tech sex workers in Silicon Valley. Governments often use surveys to gather this information, but drug dealers are unlikely to answer those. Italy made a similar announcement last week that it would begin measuring narcotics and sex work in its GDP, generating "mafia economy" jokes as the news reached social media.
But the Brits and Italians aren't the only ones who measure illegal business activity in their countries. Even the U. In Nevada, the BEA counts prostitution under "other personal services," where it gets rounded up with small industries like personal trainers and party planning.
Related: Investors high on marijuana despite risks. In Colorado and Washington, the marijuana business gets sized up in categories like retail or agriculture, depending on the point of sale, he says. Why this pot business deodorizes its cash. Personal Finance. The Motley Fool Paid Partner.
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