A N A LY S I S LABOUR AND SOCIAL JUSTICE UNDERSTANDING INFORMAL ECONOMY IN KYRGYZSTAN Better social justice for workers, higher sustainability for the country Dr Kanat Tilekeyev June 2021 The informal economy persists as an established economic phenomenon in Kyrgyzstan. Estimates of the informal economy vary from 25 to 50% of the national economy in re­cent years. It erodes the sus­tainability of economic growth in the country. 71.8% of workers in the coun­try work in the informal labour market. Economic sectors with the highest informality of workers – trade and services and construction. Tax and social security systems provide better conditions for micro-businesses and special sub-sectors. As a result, most tax burden lies in the formal sector, preventing economic development in many eco­nomic areas in the formal sec­tor – change in the economic paradigm is needed in Kyrgyzstan.