Brazil’s Shadow Economy: A Hidden Threat To Government And Society, Losing $85 Billion Annually

The shadow economy in Brazil is a significant issue that has been causing harm to both the government and citizens. A recent study by the National Confederation of Industry revealed that Brazil loses BRL 453.5 billion (USD 85 billion) annually due to illegal activities such as contraband, theft, piracy, and tax fraud.

The impact of the shadow economy is also substantial, with the study suggesting that if it were its own state, it would rank sixth in Brazil’s local economies. The clothing industry has been hit particularly hard by the shadow economy, with 67,000 jobs not being created as a result of these illegal activities.

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 to address this issue head-on.

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 this cause can help boost the work of reporters by contributing to their coffee fund and gaining access to exclusive perks. To learn more about how you can support this cause, visit our website today.