Today, we take a closer look at Brazil’s shadow economy and the ongoing feud between the House and the government. Additionally, a Congress hearing on Twitter Files Brazil is on the agenda for the day.
The National Confederation of Industry recently released a study on Brazil’s shadow economy, revealing that the country loses a staggering BRL 453.5 billion (USD 85 billion) annually due to illegal activities like contraband, theft, piracy, and tax fraud. This significant figure underscores the impact that the shadow economy has on the nation’s economy.
If the shadow economy were classified as its own state, it would rank as the sixth-largest local economy in Brazil. The study also highlights the detrimental effects of the illegal economy on job creation, with 370,000 formal jobs not being generated in 2022 due to its presence.
The clothing industry emerges as the sector most severely impacted by the shadow economy, with 67,000 jobs failing to materialize as a result of illegal activities. This dire situation has prompted calls for the government to take a tougher stance against such illegal practices.
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