Final Report: Public-Private Dialogue on Best Practices for the Transition of Economic Actors from Informal to Formal Economy

The report "Public-Private Dialogue on Best Practices for the Transition from Informal to Formal Economy" explores strategies to address the challenges of informal economic activity within APEC economies. Conducted under the APEC SME Working Group’s project SME 01 2023, the dialogue took place on 13-14 May 2024, in Arequipa, Peru, gathering experts from governments, the private sector, and academia.

The publication emphasizes that the informal economy accounts for over 50% of the global workforce, posing challenges such as lower productivity, reduced government revenue, and heightened social inequalities. Key recommendations include leveraging digital platforms to simplify formalization, providing financial incentives like tax breaks, and fostering public-private collaboration. It also highlights the need for inclusive policies targeting women, youth, and rural populations.

This report encourages APEC economies to adopt streamlined regulations, promote financial inclusion, and prioritize digital tools to create an accessible formal economy that supports sustainable growth and social equity across the region.