Informal economy and economic growth in the WAEMU

The purpose of this article is to provide an estimate of the size of the informal economy in the various countries of the West African Economic and Monetary Union (WAEMU) over the period 2000-2021. The results obtained using a DYMIMIC model highlight the persistent nature of the informal economy during this period and the existence of significant disparities between countries, ranging from around 49% of GDP in C & ocirc;te d'Ivoire, 52% in Senegal, to 82% in Guinea-Bissau in 2021. The increase in informal production in these countries goes hand in hand with economic growth. Trade openness and access to financial institutions encourage the expansion of the informal economy. Conversely, reducing tax burdens and improving the quality of the institutional environment can help reduce the size of the informal economy.