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Economics

The Economics of Informal Economies in Developing Countries

Quick fact

In some developing countries, the informal economy accounts for up to 70% of total employment, yet it is often excluded from GDP measurements.

Why this is interesting

Every day, street vendors, unregistered workshops, and app-based gig workers power cities around the world—yet they are invisible to official statistics. Why do they operate outside the law, and what drives this 'informal' economy?