Informal trade

Informal trade refers to the buying and selling of goods and services outside of official regulations and formal channels. This includes activities like street vending, unregistered businesses, and cross-border trade without official documentation. Such trade often occurs in markets or informal sectors where transactions are not tracked by government authorities, making it easier for small-scale traders to operate. While it provides livelihoods and access to affordable products for many, informal trade can also pose challenges for regulation, taxation, and quality control. It plays a significant role in many economies, especially in developing countries, complementing formal economic activities.