I researched what was occurring in the informal economy in Europe and was looking for a growth in both countries, but one faster than the other. I compared a developed vs. less developed country within Europe to help me decipher what was going on in Europe from two very different countries. I have family ties to Germany which is why I wanted to research Germany and chose Croatia because it is interesting to me. The lack of quantitative research available led me to think about how we are measuring the informal economy and what aspects go into it. I reached a conclusion that the informal economy wasn’t shrinking but changing its shape depending on its environment which is why Gross Domestic Product does not accurately measure the informal economy.