meaning of grey economy?

Question

grey economy like black economy is a malice but not as harm as black economy and what exactly is a grey economy

Answer 1

Black economy deals in illicit goods and services (prostitution, controlled substances, weapons, etc.) Gray economy involves goods that are legal to buy, sell, and own, but the distribution is done outside of normal channels, in a manner that can be pursued in civil, rather than criminal, court, but rarely, if ever, is pursued.

For example, there are gray car importers in North America that deal in expensive European cars. Normally, the manufacturer would produce a special version of the car for the U.S. or Canadian market, import it through its subsidiary in the U.S. or Canada, and sell it through franchised dealers. Gray importers buy the European version in Europe, import it on their own (sometimes claiming that the vehicle is being imported for personal use rather than for resale), and sell it directly to the end user (usually, a well-heeled enthusiast). Theoretically, this practice is illegal, because the importer is selling new cars without signing a dealership agreement with the manufacturer. In practice, the extent of this practice is small (a few hundred, maybe a few thousand cars a year), and manufacturers choose not to do anything about it, partly because gray imports create a nice buzz around the brand. Additionally, even if the manufacturer were to pursue the matter in court, damages would be very difficult to prove, so the most the court would do is issue a cease and desist order against the gray importer, who would then turn around and continue to do the same business under a different name...

Answer 2

A grey economy deals with some taxation and but also some illegal activities.

Most developing counties deal with the mafia and the government so they would be considered grey economies.