Informal sector volume records around EGP 1.5tn: ECES

The volume of the informal sector registered between EGP 1.2tn and EGP 1.5tn, which is 65-70% the size of the formal economy, said head of the Egyptian Centre for Economic Studies (ECES) Abdel Moneim El-Sayed in a recent report.

El-Sayed explained that Egypt’s informal sector consists of 18m establishments, 40,000 of them are factories.

The volume of the informal economy activities has notably increased after the 25 January Revolution as a result of the absence of entities that monitor economic activities and increased insecurity, the study said.

The study also said that the formal employment decreased by 5% in the industrial sector, 8% in the construction sector, and by 15% in the services sector in 2013. Meanwhile, the informal employment has increased by 40% in 2012 and by 45% in 2013 compared to a 30% rate in 1998.