Shadow Economy in Brazil: A National Disgrace and an Obstacle to Economic Growth
The ongoing feud between the Brazilian House and government is not the only topic of discussion today. The National Confederation of Industry has recently released a study highlighting the significant impact of Brazil’s shadow economy on the country.
According to the study, Brazil loses an estimated BRL 453.5 billion (USD 85 billion) annually to illegal activities like contraband, theft, piracy, and tax fraud. This makes it clear that the shadow economy is having a major impact on Brazil’s economy and society as a whole.
One industry that has been hit particularly hard by the shadow economy is the clothing industry, with 67,000 jobs not being created as a result of illegal activities. This highlights just how widespread and damaging these illegal activities can be, and underscores the need for action to address this issue.
Carlos Erane de Aguiar, security director for industry federations in São Paulo and Rio de Janeiro, has called these numbers a national disgrace that harms both the government and citizens. He urged lawmakers to take a stricter stance against illegal activities in order to address this issue once and for all.
The study also pointed out that 370,000 formal jobs were prevented from being created in 2022 due to the damages caused by the illegal economy. This highlights just how much potential there is for growth in Brazil if we can effectively combat these criminal activities.
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