Underground economy growing steadily: StatsCan

Canada’s underground economy (UE), or the part of economic activity that’s untaxed and unrecorded, has continued to grow, says Statistics Canada. The agency has released new UE estimates, which include data from 2013 and revised estimates from 2008 to 2012.

In 2013, total underground activity in Canada was valued at $45.6 billion, says Statistics Canada—that’s equivalent to 2.4% of GDP. In fact, the UE has increased 3.8% from 2012, growing at the same rate as GDP.

Read: The underground economy hurts all Canadians: CRA, for more from 2012

From a provincial and territorial perspective, the agency adds, the total value of underground activity was highest in the country’s four largest economies: Ontario, Quebec, British Columbia, and Alberta.

Further, in 2013, three industries accounted for more than half of the total UE value that has been added. Those industries were residential construction, retail trade and accommodation and food services.

The issue with underground activity is it undermines the integrity of Canada’s tax system and impedes the government’s ability to protect the country’s revenue base, says Statistics Canada. As a result, the government will continue to combat such activity in key high-risk sectors.

Staff

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