## Recent Trends of Informality in Greece: Evidence from Subnational Data

_Selected Issues Papers, February 20, 2024_

## Source details

**Canonical URL:** [Recent Trends of Informality in Greece: Evidence from Subnational Data](https://www.imf.org/en/publications/selected-issues-papers/issues/2024/02/19/recent-trends-of-informality-in-greece-evidence-from-subnational-data-545055)

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## Bibliographic details
- Authors: Larry Q Cui, Jiaxiong Yao
- Published: February 20, 2024
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798400267741.018

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### Overview
- Authors: Larry Q Cui, Jiaxiong Yao
- Date: February 20, 2024
- Paper explores the evolution of informality in Greece as a major structural impediment to fiscal capacity and sustainable growth.
- Main analytic focus: subnational data evidence on informality trends and drivers, and links between informality, per capita GDP growth, and tax revenue.

### Key Findings
- Informality has dropped significantly in Greece in recent years.
- There were temporary increases in informality during the sovereign debt crisis and the COVID-19 pandemic.
- Lower informality is associated with:
  - Higher subsequent per capita GDP growth.
  - Higher tax revenue.
- Greece’s significant recent progress in digitalization appears to have helped reduce informality.

### Policy Implications and Recommendations
- There remains scope to further reduce informality by:
  - Accelerating digitalization.
  - Continuing and deepening ongoing pro-growth structural reforms.

### Subjects and Keywords
- 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

*Source: Recent Trends of Informality in Greece: Evidence from Subnational Data, Larry Q Cui and Jiaxiong Yao, February 20, 2024.*

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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2024/02/19/recent-trends-of-informality-in-greece-evidence-from-subnational-data-545055_