Informal Economy Plays Vital Role in Employment and Goods Provision, Economist Says

Dr. Karim Yahya, a faculty member in finance and investment at Cairo University’s Faculty of Commerce, stated that integrating the informal economy into the formal national framework is of critical importance for Egypt’s economic landscape. He emphasized that such integration supports financial inclusion and broadens the tax base, enabling more comprehensive economic monitoring and planning.\n\nThe economist highlighted that the informal sector contributes significantly to labor absorption and the supply of goods and services, particularly in underserved markets. Formalizing these activities can lead to improved worker protections, better access to credit, and increased government revenue through taxation.\n\nHe also stressed the need for supportive policies that encourage small operators to transition into the formal system without facing excessive regulatory burdens. According to Yahya, a gradual and incentive-based approach would be more effective than强制 measures in achieving sustainable inclusion.\n\nThis perspective underscores the dual role of the informal economy: as both a source of resilience and a challenge to macroeconomic management, requiring balanced strategies to harness its potential while ensuring equitable development.\n— news from الهيئة الوطنية للإعلام\n\n— News Original —\nخبير اقتصادي: الاقتصاد غير الرسمي يسهم في تشغيل العمالة وتوفير السلع والخدم\nقال دكتور كريم يحيى مدرس التمويل والاستثمار بكلية التجارة جامعة القاهرة، إن عملية دمج الاقتصاد غير الرسمى في الاقتصاد الوطني تحتل أهمية قصوى في الاقتصاد المصري، لتعزيز الشمول المالي، وتوسيع القاعدة الضريبية.

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