• Categories
  • Archives

60% of Brazilians or 48 Million People Work Under the Table

Over half of Brazilian workers make their livings in the informal economy, estimated in US$ 122 billion, according to an official report published Sunday in Rio’s daily O Globo by the Brazilian Geography and Statistics Institute, IBGE.

The "under the table" GDP generated by 60% of the country’s workforce is greater than the GDP of many countries, such as Colombia and Egypt, and has become a major challenge for Brazil’s economic development and bureaucrats.

This informal GDP which involves 48 million people working in the informal economy is not included in the government’s official economic statistics, nor are the workers covered by any of the country’s vast lab our and social security legislation.

"This is the country of soccer and informality," economist Marcelo Neri, head of the Getúlio Vargas Foundation Social Policy Center, is quoted by O Globo.

According to the IBGE paper, the largest numbers of informal workers are employed in the textile and transport sectors.

Private sector analysts interviewed by O Globo say that the IBGE’s estimates on the size of the country’s informal sector could be "conservative".

"There are complete production lines that have not been included," said business consultant Ricardo Neves. One of the main sectors of the informal economy can be found in the small and medium business sector, where there are an estimated ten million companies that remain unregistered.

Spokespersons from the Brazilian National Confederation of Industry, CNI, argue that one of the reasons for the huge informal sector is the enormous bureaucratic difficulties and high costs of starting a business in Brazil, as well as the steep taxes "formal" businesses have to pay.

"Conditions for companies to be born, to grow and survive are extremely difficult," underlined Everardo Maciel, head of the CNI Micro and Small Business Council.

Elusion of bureaucracy costs and inefficient taxes is "great business in Brazil" and explains the strength of the informal sector, added CNI sources.

Brazil’s "formal" GDP is estimated in US$ 620 billion (2005); Colombia’s US$ 98 billion (2005); Egypt’s US$ 95 billion (2005) and Chile’s US$ 115 billion, (2005).

Mercopress – www.mercopress.com

Tags:

  • Show Comments (1)

  • hi

    HEY
    WHAT R BRAZIL’S COMPONETS OF CULTUR

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Petrobras Exports Close to 23 Million Barrels of Oil in March, a Record

State-controlled Brazilian oil and gas multinational Petrobras broke its export record in the month ...

Brazil’s Sugarcane Industry Applauds Obama and Makes Its Case for Ethanol in the US

Brazil's Sugarcane Industry Association (UNICA) seems pleased with the White House announcement this Tuesday, ...

Brazilians Hopeful Interest Rates Will Be Put on Hold

Brazil’s central bank today could interrupt an eight-month cycle of monetary policy tightening, according ...

Brazil Close to 1 Million Cars Converted to Use Gas

The Brazilian Petroleum and Gas Institute (IBP) maintains its forecast that, by the end ...

Fetus With No Brain to Be Used in Transplants in Brazil

Brazil’s Federal Council of Medicine (CFM) approved this Wednesday a resolution that permits Brazilian ...

Brazil Loses US$ 4.29 Billion From Crops Ruined by Drought

Brazilian farmers are expected to suffer losses amounting to US$ 4.29 billion (10 billion ...

US Still Number 1 Spammer, But Brazil Gets Honorable 5th Place

The antivirus company Sophos has published its latest report on the top 12 spamming ...

Car Sales Fall 10% in Brazil. Exports Also Down 7%.

Sales of domestic and foreign vehicles in Brazil fell 9.6% in June in comparison ...

Brazilian Executives Haven’t Been So Gloomy in Two Years

A survey by the Getúlio Vargas Foundation of the manufacturing sector (Sondagem Conjuntural da ...

Brazil Raises Half a Billion Dollars Selling Global Bonds

Brazil's foreign exchange reserves, which totaled US$ 239.271 billion as of the 14th this ...