The increase in informal outpatient commerce as a contributing factor in the slowdown of economic development in the city of Tacna in the framework of the COVID-19 pandemic

Abstract

The economic downturn in the city of Tacna, within the framework of the Covid-19 pandemic, has influenced the increase of informal street trading, causing a deceleration in economic growth and posing a problem for economic development. Therefore, it was decided to investigate this issue since Tacna, being a border city, relies heavily on trade. The main objective of this research is to determine whether the increase in street trading is a contributing factor to the economic slowdown in the city of Tacna during the COVID-19 pandemic. It concludes that in Tacna, informal street trading contributes to tax evasion and is one of the causes of the deceleration of sustainable economic growth in the city. It is understood that informal street trading and informal businesses reduce productivity, resulting in a lower contribution to the city's GDP, as well as unfair competition and expenses that ultimately affect formal sector businesses.