APEC ECONOMIC POLICY REPORT 2025

The informal economy is everywhere but also nowhere. Each day, informal economy actors

trade goods, provide services and engage in business transactions. People and firms in the

informal economy generate value in our communities, but their contribution to the economy is

largely unseen in economic data. They often shoulder higher levels of risk and vulnerability,

but they are generally out of the reach of safety and regulatory bodies. Informal sector firms’

productivity is generally lower, and their workers are likely to have less access to development

opportunities and protections. While the circumstances for being in the informal sector vary –

some are there by choice; for others, it is the only way to participate in the economy – it is clear

that pathways to formalisation need to be enhanced for the benefit of firms, workers and the

economy.

This year’s APEC Economic Policy Report (AEPR) discusses the important topic of Structural

Reform to Increase Participation in the Formal Economy, highlighting the challenges and

opportunities to opening pathways for formalisation. It analyses the four types of informality

and their root causes, and explores the complex relationship between informality and economic

growth. It then recommends facilitating pathways to formalisation through strengthening

governance and institutional quality, investing in human capital development and recognition,

and ensuring that the benefits of formalisation outweigh its costs.

I would like to thank Australia and New Zealand for generously providing direct funding for

the preparation of the report. I would also like to express my gratitude to the AEPR 2025 Core

Team co-led by Korea and Peru, and supported by Australia; Canada; China; New Zealand;

Papua New Guinea; Chinese Taipei; the United States; and Viet Nam. I am pleased to note

that 15 APEC Economic Committee member economies provided Individual Economy Reports

(IERs) for this AEPR, while three economies also provided case studies on their formalisation

policies. These contributions greatly enhanced the substance of the AEPR. Gratitude is also

due to the APEC Secretariat’s Programme Director for the Economic Committee, Alice

McKenzie, for her valuable advice throughout the process and the APEC Policy Support Unit

(PSU) for managing the production of the Main Report. The AEPR 2025 was drafted by a team

at the PSU comprised of Emmanuel A. San Andres and Eldo Malba Simanjuntak and a team

at Svara Institute comprising Titik Anas, Made Suardhini, Ida Ayu Erica Pramesty Utami,

Estiana Cahyawati and Yolanda Orient Kusmitha.

This AEPR on Structural Reform to Increase Participation in the Formal Economy contributes

to the realisation of the Enhanced APEC Agenda on Structural Reform (EAASR), the Lima

Roadmap to Promote the Transition to the Formal and Global Economies (2025–2040) and the

Putrajaya Vision 2040. As this is the Economic Committee’s flagship publication for 2025, I

look forward to members’ initiatives to implement the AEPR’s recommendations.

发布时间：2026-04-27