informal economy

  

Definition

System of trade or economic exchange used outside state controlled or money based transactions. Practiced by most of the world's population, it includes barter of goods and services, mutual self-help, odd jobs, street trading, and other such direct sale activities. Income generated by the informal economy is usually not recorded for taxation purposes, and is often unavailable for inclusion in gross domestic product (GDP) computations.

Use informal economy in a sentence

  • Sometimes it may be easier to offer trades in a way of informal economy if you both have something the other wants.

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  • I preferred the informal economy because it was not controlled by the state and there was a little more leeway for us.

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  • You may be able to find a better deal in an informal economy when you can trade your product for another.

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