• Contact
  • Privacy Policy
Blacksonrise.com
DONATE
  • Consultation EST
  • Herbal Internal Wash
  • Group Training
  • Videos
  • Spiritual Detox
  • Ecourses
  • Client Area
    • Course Login
    • Video Login
    • LogOut
No Result
View All Result
  • Consultation EST
  • Herbal Internal Wash
  • Group Training
  • Videos
  • Spiritual Detox
  • Ecourses
  • Client Area
    • Course Login
    • Video Login
    • LogOut
No Result
View All Result
Blacksonrise.com
No Result
View All Result

Large but On The Decline – IMF Blog

blacksonrise by blacksonrise
October 30, 2019
in Uncategorized
0
Large but On The Decline – IMF Blog
0
SHARES
38
VIEWS
Share on FacebookShare on Twitter

By Thomas F. Alexander

Español

The informal economy, which is economic activity that falls outside the regulated economy and tax system, such as street vending or unregistered taxi drivers, is hard to measure.

People and companies engaged in the informal economy usually operate on a small scale. This means there are no official statistics on the informal or shadow economy, as it’s sometimes called, so economists need to estimate its size. Some common techniques include surveys or indirect indicators such as the demand for currency. 

The size of the informal economy—measured as a share of GDP—has fallen gradually across all regions.

Our chart of the week, based on an updated version of earlier IMF research, shows that the size of the informal economy—measured as a share of GDP—has fallen gradually across all regions. While reforms to reduce informality, such as reducing the hurdles to registering a business, are working, the shift from informal to formal takes time.

The regions with the highest share of informality during 2010–17 are sub-Saharan Africa and Latin America and the Caribbean—both at 34 percent of GDP. This compares with 9 percent of GDP for North America. In the Organisation for Economic Co-operation and Development, the informal sector is equivalent to nearly 15 percent of GDP.

The informal economy is generally associated with low productivity, poverty, high unemployment, and slower economic growth. It is also more prevalent in low-income countries because as countries develop, the easier it is for workers to transition to the formal sector. At the same time, it provides employment and income to people who would otherwise not find employment, or it supplements their income from employment in the formal, regulated sector.

Advertisements

The challenge for policymakers is to create an environment where the formal sector can thrive while creating opportunities for people working in the informal sector to maintain or improve their living standards. Some of these measures include reducing the costs of doing business, tackling corruption, and improving access to finance and services.

This year’s topic of the seventh IMF Statistical Forum—Measuring the Informal Economy—will review the definition of “informal” and explore new technologies, such as using night lights from satellite images, to capture the true size of the informal economy. This will help policymakers better address the challenges of persistent informality.

Credit: Source link

Previous Post

Bogota, Colombia Elects First Woman And Lesbian Mayor

Next Post

Orlando Unveils Designs For Pulse Memorial, Museum Honoring The 49 Victims

Next Post
Orlando Unveils Designs For Pulse Memorial, Museum Honoring The 49 Victims

Orlando Unveils Designs For Pulse Memorial, Museum Honoring The 49 Victims

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

ADVERTISEMENT

HOT Updates

No Content Available

BlackSonRise.com is an online news portal which aims to provide Caribbean News, African News, Business and much more stuff like that. Feel free to get in touch with us!

Follow us on social media:

Recent News

  • Eyewitness: Christmas Eve… | INews Guyana
  • UK stocks edge higher in muted holiday trading – SABC News
  • History repeats for NYCFC against Costa Rican debutant

Subscribe NOW

Loading
  • Contact
  • Privacy Policy

© 2019 Blacksonrise.com is an online news, e-learning, and business website that caters to the global black community.

No Result
View All Result
  • Consultation EST
  • Herbal Internal Wash
  • Group Training
  • Videos
  • Spiritual Detox
  • Ecourses
  • Client Area
    • Course Login
    • Video Login
    • LogOut

© 2019 Blacksonrise.com is an online news, e-learning, and business website that caters to the global black community.

USD $
  • USD USD $
  • EUR EUR €
  • GBP GBP £