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Money Laundering 22% of Costa Rica’s GDP

Article Summary:

The biggest revenue maker for Costa Rica isn’t tourism, it’s money laundering, a trend which is spreading throughout Central America. In Honduras the same ratio is 20%, in Panama 12%, 15% in Nicaragua, and in El Salvador and Guatemala 4%.

Photo Credit: Flickr

Original Article Text From Global Financial Integrity:

Illicit Financial Flows from Developing Countries: 2002-2011

Primary Findings
The developing world lost US$946.7 billion in illicit outflows in 2011, an increase of 13.7% over 2010. The capital outflows stem from crime, corruption, tax evasion, and other illicit activity.

The report finds that from 2002 to 2011, developing countries lost US$5.9 trillion to illicit outflows. The outflows increased at an average rate of 10.2% per year over the decade—significantly outpacing GDP growth.

As a percentage of GDP, Sub-Saharan Africa suffered the biggest loss of illicit capital. Illicit outflows from the region averaged 5.7% of GDP annually. Globally, illicit financial outflows averaged 4% of GDP.

China leads the world over the 10-year period with US$1.08 trillion in illicit outflows. However, 2011 marked the first time that Russia’s illicit outflows exceeded China’s, with a loss of US$191.14 billion against China’s US$151.35 billion. The previous methodology had significantly understated Russia’s illicit outflows, while it overstated China’s illicit outflows.

Link to Original Article:

From Global Financial Integrity

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