Germany's black economy 'accounts for 17% of GDP'

Germany's black economy is generating around €1bn a day and is producing about 17% of Germany's Gross Domestic Product, according to finance minister Hans Eichel.

Speaking at the annual customs accounts, Eichel said illegal workers in Germany cost the government €348m last year through lost taxes and contribution to social security.

Eichel said most of the cases of illegal employment are thought to be in the hotel and restaurant industry, the construction sector and cleaning, taxi and car hire firms.

The value of seized counterfeit goods in Germany more than doubled to €180m in 2003, with more than half related to computer products or audio and video equipment, the ministry said.