## AUSTRIA: Illegal Drug Trafficking, Smuggling of Cigarettes and Illegal Prostitution in National Accounts and Balance of Payments

## Source details

**Canonical URL:** [AUSTRIA: Illegal Drug Trafficking, Smuggling of Cigarettes and Illegal Prostitution in National Accounts and Balance of Payments](https://www.imf.org/en/data/statistics/informal-economy-data/reports/austria-illegal-drug-trafficking)

## Other formats

- [Markdown version](/en/data/statistics/informal-economy-data/reports/austria-illegal-drug-trafficking/index.md)
- [Structured JSON version](/en/data/statistics/informal-economy-data/reports/austria-illegal-drug-trafficking/index.json)
- [Bundle manifest](/en/data/statistics/informal-economy-data/reports/austria-illegal-drug-trafficking/bundle-manifest.json)

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### Introduction
- Estimates for illegal drug trafficking, smuggling of cigarettes and illegal prostitution are included in National Accounts.
- Smuggling of alcohol is not significant in Austria.
- Cross-border activities of these illegal activities are included in Balance of Payments.
- Illegal drug trafficking and smuggling of cigarettes are included in the position “illegal goods”.
- Illegal prostitution is included in “personal, cultural and recreational services”.
- Non-reported health services are included in health services.
- Payments for non-recorded construction work and home help are included in workers remittances.
- The estimates are done in accordance with the recommendation of the Task Force on illegal Activities.
- The scope of these estimated items cannot be determined by the Oesterreichische Nationalbank, as these estimates are done by Statistics Austria and transmitted in the respective B.O.P aggregates.

### Scope, Methodology, Compilation Practices, and Data Sources
- Estimates are done by Statistics Austria.
- Oesterreichische Nationalbank receives aggregates with a regional breakdown; therefore it is not possible to determine the scope of items included in the respective aggregate.
- Illegal goods are solely imported; there are no exports.

### Estimation of Illegal Activities
- Estimation of cigarette smuggling:
  - Estimates are based on demand.
  - Based on micro census on health, demand for cigarettes is estimated.
  - The demand is deducted by the number of cigarettes that have been sold legally.
  - The difference is then the number of cigarettes that have been sold illegally.
  - Based on information on illegal market of cigarettes, average prices are known.
  - The respective value is included as import in Balance of Payments.
  - There are no data for export activities.
- Estimation of drug trafficking:
  - Estimates are based on demand.
  - Demand is derived from studies and from surveys (mainly for the years 2004-2008) on drug consumption.
  - Information on prices is derived from UN World Drug Report, information from Department of the Interior and Department of Health.
  - The respective value is included as import in Balance of Payments.
  - There are no data for export activities.
- Estimation of illegal prostitution:
  - Estimates are based on supply.
  - There are information/estimates on number of illegal prostitutes and average income from administrative data and NGOs.
  - Multiplying these numbers allows to compile the whole supply of prostitution services.
  - Share of non-residents is included in Balance of Payments.

### Linkages Across Statistical Domains
- All three estimates are integrated in National Accounts and Balance of Payments statistics.
- In national accounts consumption and mark ups of cigarette smuggling and drug trafficking are included as well.
- As there are no significant intermediate services, spread between purchase and sale prices is value added.
- For prostitution there are certain assumptions on intermediate services, such as rents, material and other services.

### Current Challenges and Conclusions
- Austria is constantly trying to improve estimates and increase completeness of national accounts and consequently in Balance of Payments statistics.
- Shadow activities cannot be measured directly; values are approximated by model-based estimates.

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## References

- [Informal Economy Reports](https://www.imf.org/en/data/statistics/informal-economy-data/reports)

_Source: https://www.imf.org/en/data/statistics/informal-economy-data/reports/austria-illegal-drug-trafficking_