Strategy Note /
Global

The shadow economy in EM: Bad for sovereign risk, good for consumer spend

  • We chart the size of the 'shadow', 'informal', 'grey', 'undeclared' economy in EM; eg China 13% versus US 7%, India 52%

  • Undeclared (not taxed or regulated) economic activity harms fiscal sustainability and financial markets development

  • Silver lining: consumer spending and private sector resilience to shocks may prove greater than standard metrics imply

The shadow economy in EM: Bad for sovereign risk, good for consumer spend
Hasnain Malik
Hasnain Malik

Strategy & Head of Equity Research

Tellimer Research
24 June 2022
Published byTellimer Research

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