Good morning! Today, a look at Brazil’s shadow economy. The House v. government feud continues. A Congress hearing on Twitter Files Brazil.
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Brazil’s shadow economy is huge
The National Confederation of Industry has released a study on Brazil’s shadow economy, suggesting that the country loses BRL 453.5 billion (USD 85 billion) a year to illegal activities such as contraband, theft, piracy, and tax fraud.
👉 Why it matters. If the shadow economy were its own state, it would be the sixth-largest local economy in Brazil.
What they are saying. “These numbers are a national disgrace that hurts governments and citizens,” said Carlos Erane de Aguiar, security director for the São Paulo and Rio de Janeiro industry federations. “We urge the government to take a more rigid stance against this illegality.”
Jobs. Also according to the study, the damages caused by the illegal economy prevented 370,000 formal jobs from being created in 2022.
Biggest losses. The clothing industry was the worst affected by the shadow economy, with 67,000 jobs not being generated as...