Black markets distort official statistics from "summary" of EBOOK: Macroeconomics by Rudiger Dornbusch,Stanley Fischer,Richard Startz
When official statistics are distorted by black markets, it can lead to inaccurate assessments of a country's economy. Black markets operate outside of the legal framework, which means that transactions occurring in these markets often go unreported. As a result, the data used to calculate important economic indicators such as GDP, inflation, and unemployment may not fully capture the true economic activity taking place in the country. For example, if a significant portion of a country's economic activity is happening in the black market, it can artificially deflate the reported GDP. This can give the impression that the economy is smaller than it a...
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