Morocco Benefits From Shadow Economy

A recent study published this week reveals that the informal economy represents roughly 20% of Morocco’s gross domestic product, excluding agriculture and 10% of formal imports, Morocco World News reported. The General Confederation of Enterprises of Morocco released the findings of its joint-study on the informal economy and its impact on the competitiveness of companies, conducted with the firm Roland Berger in 2014. According to the report, the informal sector, which includes all non-agricultural economic activities conducted underground without the authorization of the relevant authorities, sees the highest proportion of job creation, with 2.4 million informal employees, representing nearly half of the working population. This shadow economy constitutes 54% in textiles and clothing, 32% in road freight transport, 31% in construction, and 26% in the food and tobacco industry. The report, which only includes entities engaged in legal but informal activity, highlights that informal economic operations generate almost MAD 170 billion ($18.46 billion) in untaxed revenues, although it is difficult to obtain a precise estimate.