Financial Times FT.com

Black economy: A tough fight back from the black

By Anthony Skinner

Published: November 21 2007 04:40 | Last updated: November 21 2007 04:40

Turkey is enjoying the longest single period of uninterrupted economic growth in its history. The economy expanded at an annual rate of 7.4 per cent between 2002 and 2006, with gross domestic product amounting to $410.2bn (TL721.7bn) last year. The ruling Justice and Development party (AKP) wants to increase GDP per capita to $10,000 by 2013, from about $6,000 today. A quick way of helping to achieve that, analysts and commentators agree, would be to identify and harness Turkey’s vast unregistered or “black” economy.

An estimated 50 per cent of Turkey’s active labour force ducks beneath the official radar screen, resulting in massive unquantifiable losses of tax revenue. The AKP election manifesto pledged to bolster efforts to fight the black economy. Since then, and as part of its 2008 strategy, the government has unveiled a multi-pronged strategy to confront the problem.

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