The ongoing feud between the House and government continues to dominate headlines in Brazil, but today we’re taking a closer look at the country’s shadow economy. A recent study by the National Confederation of Industry has shed light on the staggering cost of illegal activities such as contraband, theft, piracy, and tax fraud. Each year, Brazil loses an astounding BRL 453.5 billion (USD 85 billion) to these illicit activities.
The study suggests that if the shadow economy were its own state, it would be the sixth-largest local economy in Brazil. This is a significant impact that harms both citizens and governments alike. One industry in particular that has been hit hard by illegal activities is clothing – with 67,000 jobs not being created due to these illegal practices.
Carlos Erane de Aguiar, security director for industry federations in São Paulo and Rio de Janeiro, called the numbers a national disgrace that must be addressed. He urged the government to take a stricter stance against illegal activities in order to tackle this issue head-on.
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