Informal Sector Accounts for 20% of Morocco’s GDP- Study says

The informal sector makes up 20% of Morocco’s GDP said a study conducted by the association of Morocco’s employers (CGEM).

The study shows that the textile sector remains the most affected with the informal economy rising up to 54% followed by road transport 32%, construction 31% and agri-food industry 26%.

The informal sector employs 2.4 million people, which leaves most of them uncovered by social protection entailing losses for the state in terms of taxes, the study said.

The study noted that the quality of employment offered by the informal economy is marked by precariousness and instability as well as the absence of social advantages along with low pay.

The study warned that the scale of the informal sector undermines Morocco’s economy while limiting investments and innovation, adding that customers of informal sector services are exposed to dangers relating to lack of hygiene.