ABAC’s 2024 Report Shows the Potential of Digital Solutions to Tackle Informality in APEC

The APEC Business Advisory Council (ABAC)’s Digital Innovation Task Force (DITF) launched the new report E-formalization: How the Digital Economy can Unlock & Empower APEC Economies, at an event in Lima, Peru on Tuesday.

Empowering the transition to the formal economy was a 2024 APEC priority under Peru’s Chairmanship. Informality is a longstanding challenge, representing 13.4 percent of APEC’s overall GDP, varying significantly from 8.5 percent in the United States to 59 percent in Peru, where it poses a particularly difficult challenge.

“Informality limits economic potential and holds back better opportunities for millions,” said ABAC Chair Julia Torreblanca. “This report offers a fresh look at practical digital solutions that are having an impact.”

Over the next decade, as digital platforms drive 70 percent of new global value, the potential for micro-, small, and medium-sized businesses (MSMEs) in the formal digital economy has never been clearer.

“We wanted to take stock of whether rapid acceleration of digitalization could help informal workers and businesses transition to the formal economy,” said Jan De Silva, ABAC Canada member and Chair of ABAC’s Digital Innovation Task Force. “Our findings show that digital tools are showing promise in facilitating a transition to formality,” De Silva added.

This first-of-its kind report highlights how digital tools are simplifying bureaucratic processes, increasing access to financing, and expanding MSMEs’ market reach through e-government procurement, e-payments, e-commerce platforms, and platform economy applications. It includes a comprehensive analysis of the state of informality and digitalization in each APEC economy, offering promising digital practices and policy actions to empower MSMEs in this transition.

“By addressing the challenges of the informal economy with digital solutions, APEC has a powerful opportunity to promote inclusive growth across the region. We are pleased to deliver this work as a guide.” Torreblanca concluded.



For further details, please contact:

Luciano Parades (Mr), ABAC Executive Director 2024
+51 997 587 486 at [email protected]

Antonio Basilio (Mr), ABAC Secretariat
+ 63 917 849 3351 at [email protected]