Germany’s shadow economy reached approximately €510 billion in 2025, the highest level in more than a decade. Analysts forecast a further 5.5% increase in 2026, bringing the total to around €538 billion.
Its share of GDP rose from 11.4% to 11.6%. Contributing factors include weak economic growth, rising unemployment, and policy changes such as higher minimum wages and tax adjustments.
Internationally, Greece is expected to record the highest shadow economy share at 21.6%, while Switzerland remains the lowest at 5.3%. Germany’s figure is below the average of major industrial nations but has grown at a faster pace.
Sources - Agencies
