Underground economy estimated at $36 billion

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Canada's 'underground economy'— everything from undeclared tips to under-the-table construction work—was estimated at an upper limit of $36 billion in 2008.

From 1992 to 2008, the underground economy increased 90%. During the same period, the economy as a whole, as measured by nominal GDP, more than doubled (128%).

The underground economy represents the extent of unreported productive activities in the economy. The main reason it has grown more slowly than GDP is that industries traditionally considered to be involved in underground activity are a declining portion of the overall economy. Those sectors of the economy less affected by the underground economy are growing relatively faster.

In 2008, three sectors accounted for nearly 60% of total value added of under­ground activities: construction (30%), retail trade (16%) and accommodation and food services (12%).

Chart 9.3 Underground economy
View data source for chart 9.3

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