Informal economy

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An informal economy, or informal sector, refers to economic activity that is unregulated and untaxed by a government. This activity is at the margins of a nation's economy. Examples may include street vendors or bicycle repairmen. Informal economies are very strong and widespread in developing countries such as Mexico.

An informal economy may include illegal or black market activities such as drug dealing, but the term "underground economy" is more often used in this manner.