Our new report on the impact of #COVID19 on #economicinformality in Eurasia is out now.

Read the report here http://bit.ly/oecdeurasiainformality https://twitter.com/OECDglobal/status/1386971129437466624

Why informality, and why now?

A few takeaways from our report below - read more in the at the following link http://bit.ly/oecdeurasiainformality

Efforts to contain the spread of #COVID19 disrupted informal economic activities no less than formal ones. Yet, support to them has been limited; government action is needed across Eurasia.

With COVID-19 hitting hard the informal sector, governments in Eurasia are encouraged to consider a longer-term approach to firm formalisation whilst strengthening social safety nets in a sustainable way.

Up to 75% of #informal sector workers faced a loss of livelihood resulting from #COVID-19. A huge hit in Eurasia, where informal sector employment reaches up to 70% in Kyrgyzstan.

Business formalisation cannot be pursued in isolation from economic development: measures targeting formalisation can certainly help but the most important factors to address are those that can support the growth of more productive firms.

Migrant workers in both the formal and informal sectors have suffered from containment measures and border closures, and remittance flows have fallen sharply. 40% of Central Asian migrants in Russia reported permanent job loss, and 75% experienced unpaid leave.

COVID-19 has further highlighted the interaction between informality and poverty: it has disproportionally affected vulnerable households, women and migrants who are at risk of further slipping into poverty.

Informal sector workers are often at higher risk of infection and struggle to afford healthcare. 56% of healthcare expenditure in the region is out-of-pocket vs a global average of 38%. Eurasia countries need to invest heavily in their outdated and expensive healthcare systems.

Extension of support measures to vulnerable households and informal firms is a much-needed short-term step, but governments are encouraged to consider a longer-term approach to formalisation.

You can read more of our findings, as well as a number of policy options, in the report http://bit.ly/oecdeurasiainformality