(Bloomberg) -- The informal nature of many work relationships in emerging market economies will exacerbate the fallout from the pandemic in those countries, OECD Secretary General Angel Gurria said.
“The most vulnerable are the hardest hit -- that includes the people, but that also includes the countries,” Gurria said in a Bloomberg Television interview on Wednesday.
“It means that their growth is going to be affected, not only as much as the developed countries, OECD countries, but also that the impact will linger for longer. That is aggravated by one particular element, which is very high levels of informality.”
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Efforts to extend aid can be undermined by the fact that millions across emerging markets typically working in an unregulated, untaxed informal economies.
“So even if you have the capacity to write the cheques to all these people, you wouldn't even know where to send them because half the workforce are not registered anywhere, they're not paying taxes, they are not on social security,” Gurria said.
He spoke after the OECD published its latest forecasts, which predict a 6% contraction in the world economy this year.
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