They’re also going to include spending on R&D, something that normally isn’t included.
In all, the illegal activities bit bump up the Spanish PIB by 0,87% or 26 billion euros, based on a 2010 study.
The whole thing appears to be a farce, they don’t even have any up to date studies on the subject, it’s all based off a 2010 study.
See, the trouble is that Brussels has announced a new set of harmonised accounting rules for all EU members for them to publish their economy figures. Spain, along with a lot of other EU countries, must now restate their national earnings.
Which means that for 2012, Spain’s economy contracted by 2,1% under the new system, instead of the official 1.6%, and in 2011, instead of growing by 0,1%, it contracted by 0,6%.
Anyway, the INE has confirmed that it’s using a little known “estimation of illegal activities” system promoted by EUROSTAT to include, amongst others, illegal gambling, prostitution, drug sales and cig smuggling. Which helps pump up the economy somewhat.
Except, of course, that these things must be guessed at. And could be good for an extra 0,5% here and there.