The informal economy recovered from the fall it had in 2020 due to the pandemic and participated in 2021 with 24 out of every 100 pesos of gross domestic productthe National Institute of Statistics and Geography (Inegi) reported on Monday.
According to the preliminary results of the Measurement of the Informal Economy reported by the Inegi, informality participated with 23.7% of Mexican GDP last yearslightly above the 23.1 of 2019, prior to the health contingency due to Covid-19.
In 2020, with the economic closure of many activities and the absence of informal commerce on the streets, the participation of this sector was 21.8%.
This also meant a recovery of the informal sector in Mexico of 1.9 percentage points, compared to 2020.
In 2020, due to the confinement by Covid-19, the participation was below the entire series”, detailed the Inegi.
More Mexicans into informality: Pandemic triggered growth in the sector
The autonomous body also revealed that in the previous year the participation of the informal sector went from 11 to 12.4% and other forms of informality, from 10.9 to 11.3%.
Of the components of the informal economy and throughout the period, the informal sector contributed less to GDP than the other modalities of informality”, explained the Inegi.
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According to data from the Mexican Institute of Statistics, the informal sector grew 1.4 points in its participation rate in the Mexican economy compared to 2020.
While, the other modalities of informality increased 0.4 points due to the gradual economic recovery in the face of the health emergency.
For his part, Inegi detailed that the contribution of informality in Mexico was generated by 55.8% of the population employed in informal conditions. Likewise, the 76.3% of the remaining GDP in 2021 was generated by the formal sector, with 44.2% of the formally employed population.
For its part, the Inegi data show that the informal economy registered greater volatility than the formal economy.
Far from pandemic levels
On the one hand, during the pandemic, the formal economy fell by 8%, while the informal economy contracted 12.3%.
While the rebound in 2021 was also higher for the informal economy, at 12.4%, compared to 4.7% for formal GDP.
The advance/rebound of the informal economy of 12.4% when the pandemic subsided in 2021, came from an expansion of 15.7% in the informal sector and an increase in gross value added of 9% in other forms of informality,” he explained in Twitter, Julio Santaella, former head of Inegi.
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