Financial situation analysis of the Transition from Unregulated to Regulated Economy: The Algerian Experience as a Model with Reference to International Experiences

Abstract

Algeria's informal economy is a structural phenomenon that reflects economic challenges resulting from heavy reliance on hydrocarbons and weaknesses in economic diversification. According to recent estimates in 2025, its size is about 21% of GDP (GDP) during 1980-2019, with a presidential estimate in 2021 of US $75 billion in 2018, accounted for 31.4% of the economy ($82.5 billion), expected to decline to 25.6% by 2043 in the current scenario. This sector provides employment for about 39% of the workforce in 2024, but causes huge tax losses of up to 4,800 billion Algerian dinars in 2019 and hinders economic. This study aims to highlight the phenomenon of the informal economy, that is, the suffering of many countries in different policies

The degree of its economic progress, where the debate about this phenomenon and its importance and effects has intensified since the 1980s and with an increase in its proportion of GDP, it was necessary to pay attention to it as a manifestation and as a harvester of wealth, and address its causes and effects that have been Social economic dimensions. This is what we will show through this research and that highlights the effects and repercussions of the informal economy on the development of the national economy, and what are the strategies of its management and reintegration into the formal economy through the inference of international experiences in this area.