Shadow Economy in Brazil: A Wake-up Call for the Government as Congress Examines Twitter Files

Brazil’s shadow economy is a significant problem, with the National Confederation of Industry releasing a study that reveals the country loses BRL 453.5 billion (USD 85 billion) annually to illegal activities like contraband, theft, piracy, and tax fraud. The clothing industry is particularly hard hit by the shadow economy, with 67,000 jobs not being created as a result of these 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 in order to address the issue. Supporters of the cause can help boost the work of reporters by contributing to their coffee fund and gaining access to exclusive perks. For more information on how to support the cause, visit the website.

In addition to this ongoing feud between House and government, there is also a Congress hearing on Twitter Files Brazil happening today. The study released by National Confederation of Industry sheds light on how illegal activities are impacting Brazil’s economy and society as a whole. The clothing industry is one of many industries affected by this shadow economy, which if it were its own state would be the sixth-largest local economy in Brazil. This highlights just how significant this issue truly is and how important it is for lawmakers to take action against it.