The Informal Economy's Role in Côte d'Ivoire's GDP: Implications for Policy Development

Côte d'Ivoire's economy is increasingly recognised for its dual nature, with both formal and informal sectors contributing significantly to Gross Domestic Product (GDP). The informal sector plays a crucial role in employment generation and economic resilience, though it often faces regulatory challenges and underreporting. The study employs a comprehensive literature review and secondary data analysis, focusing on historical economic reports and government statistics to assess the impact of the informal economy on Côte d'Ivoire's GDP over recent years. Historical data reveals that the informal economy in Côte d'Ivoire contributes approximately 35% to the country's GDP, highlighting its significant role despite regulatory constraints. This underreporting underscores the need for more inclusive economic policies. The findings suggest a need for policy reforms aimed at improving regulations and providing better access to formal financial systems for the informal sector. Such measures are essential for promoting sustainable growth and reducing poverty in Côte d'Ivoire. Policy recommendations include developing targeted support programmes, enhancing tax compliance mechanisms, and fostering partnerships between government and private sectors to facilitate smoother integration of the informal economy into the formal system.