The Shadow Economy in Brazil: A Huge Loss to the Nation and Its Citizens

In recent news, Brazil’s shadow economy is taking center stage as the country continues to grapple with an ongoing feud between the House and government. Additionally, there is a Congress hearing on Twitter Files Brazil, which has shed light on the significant impact of illegal activities such as contraband, theft, piracy, and tax fraud.

A recent study by the National Confederation of Industry has revealed that Brazil loses BRL 453.5 billion (USD 85 billion) annually due to these illegal activities. If it were its own state, the shadow economy would rank as the sixth-largest local economy in Brazil. The clothing industry has been particularly hard hit by these illicit practices, with an estimated 67,000 jobs not being created as a result.

Carlos Erane de Aguiar, security director for industry federations in São Paulo and Rio de Janeiro, called the numbers a national disgrace that harms both the government and citizens. He urged the government to take a stricter stance against illegal activities in order to address this pressing issue.

The study also highlighted that 370,000 formal jobs were prevented from being created in 2022 due to the damages caused by the illegal economy. Supporters of efforts to combat this issue can help boost journalists’ work by contributing to their coffee fund and gaining access to exclusive perks. To learn more about how you can get involved and support this cause, visit their website today.