Today, we delve into the shadow economy of Brazil and the ongoing conflict between the House and the government. Additionally, a Congress hearing on Twitter Files Brazil is scheduled for the day.
A recent study by the National Confederation of Industry has shed light on Brazil’s shadow economy, which costs the country BRL 453.5 billion (USD 85 billion) annually due to illicit activities such as contraband, theft, piracy, and tax fraud. This significant figure highlights the impact that the shadow economy has on Brazil’s economy.
If classified as its own state, the shadow economy would rank sixth in terms of size in Brazil. The study also shows that illegal economic practices have a detrimental effect on job creation, with 370,000 formal jobs not being created in 2022 due to its presence.
The clothing industry is among the sectors most heavily affected by the shadow economy, with 67,000 jobs lost as a result of illegal activities. This dire situation has prompted calls for stronger government action against such practices.
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